Buying a home is the ultimate American dream. However, it can be hard
to obtain a mortgage
loan if you have poor credit. There is a way around this seemingly
large obstacle however.
The way mortgages work, is that a lender looks at your credit, and judges how high of a risk you are to lend to. For the most part, the more you borrow the higher risk you are to the lender. If you have poor credit, very few lenders are going to want to loan you money.
From a lender's point of view, the larger your down payment, the less of a risk you become. So if you have poor credit, it's a smart idea to save as much as possible for your down payment, even if this means waiting a few years to buy a home. This will also pay off in the long run because you will be paying less interest on your home loan.