It is extremely difficult to not be aware of the great opportunities in today's real estate market. The value of homes has fallen dramatically and with lowered expectations of homeowners who wish to sell their homes along with an unprecedented number of foreclosures, there may be no better time to purchase a home. While this idea is a good one, what if your credit score is less than great? How do you find a mortgage with bad credit? Never fear, mortgage loans for people with no credit are still available.

Many things can harm your credit score. Even not making a payment on time will reduce your credit score. It is not difficult in this day and time to have your credit score be below or far below the average. It often takes several years after leaving school to learn just how to handle your money. Very often it is this learning period that truly harms your credit score, which will prohibit you from getting a mortgage from a bank or credit union.

Mortgage loans for no credit worthy people are considered to be "sub-prime" mortgages. Should your credit score cause you to fall into t his category, there are few banks or credit unions that will grant you a mortgage. The dreaded "do you know your credit score?" question will come to haunt the person seeking a mortgage. There are however, still sub-prime lenders in existence and they do grant mortgages to those with less than perfect credit.

Many sub-prime mortgage lenders will require a larger initial payment and chances are the sub-prime mortgage when granted will be more expensive for the person seeking the loan. This is understandable since the sub-prime lender is taking a greater risk by providing a mortgage loan to a person with less than perfect credit. However, the advantages presented in a time when housing prices are relatively low may offset the disadvantages of a higher interest rate, sub-prime loan.

Not all sub-prime lenders are created equally. There are many sub-prime lenders that are not totally honest or reliable. Care must be taken by the person seeking out a sub-prime mortgage loan to select a reputable and honest firm that is offering sub-prime mortgages.

Mortgage loans for no credit are still available, however the applicant for the mortgage loan must understand that the loan is going to cost more than a loan acquired from a bank or credit union. These extra costs and potentially fees must be added into the costs for taxes and homeowners insurance. Unless the prospective homeowner takes all of these factors into consideration, they may find themselves on the wrong side of a home foreclosure and be in worse shape than they were prior to obtaining a sub-prime loan.

Since the federal government backs FHA loans they are extremely useful if you don't have credit. Those with no credit can get these loans and the government will back them so that the risk isn't there for the bank.

These loans are much better than most other options you have out there for loans and will actually help you to build credit. Since the government backs these loans they are much better than most bank loans that you'll get to buy a home.

Many people that get FHA loans have no idea how good they actually are. If you have no credit or bad credit, other loans are really expensive. You could expect to pay at least 10% interest for bad credit motorcycle loans, 10% interest for bad credit home equity loans,  12% interest for bad credit car loans, 10% interest for bad credit small business loans (unless they're backed by the government), 300% interest for payday loans (ridiculous), and 8% interest for most refinance loans for bad credit. Mortgage loans for poor credit are much easier to get, because of the FHA.