There are a number of mortgage programs available for homebuyers with poor credit ratings. If you have been putting off purchasing your home because of your credit rating and not having the necessary down payment, 100% mortgage financing could be right for you. Here is what you need to know about 100% financing with poor credit.

Getting approved for a mortgage with poor credit is not as difficult as you think. The trick to getting approved is to find a mortgage lender that specializes in bad credit mortgages. These lenders are called Subprime mortgage lenders, and offer a variety of programs for homebuyers with poor credit ratings. Instead of being denied by a bank or traditional mortgage lender, you should focus on this type of lender if your credit rating is poor.

Most traditional mortgage lenders generally require that you have been at your job for a minimum of two consecutive years. Subprime mortgage lenders only require one year. Not all subprime mortgage lenders offer 100% mortgage financing; you will need to shop around for a lender that does or enlist the help of a mortgage broker to find the right lender.

Mortgage brokers have access to loan offers you may not be able to find on your own. There are brokers that specialize in bad credit mortgages and could even match you with a lender for 103% of your purchase price. The extra three percent allows you to finance your closing costs; this will greatly reduce your out-of-pocket expenses when you close on the mortgage.

100% financing is often referred to as no money down loans. This type of loan is ideal for homebuyers that are trying to rebuild their credit. If you have a credit score in the neighborhood of 580 or 600 this could be the loan option for you. To learn more about your mortgage options, including common mortgage mistakes to avoid, register for a free mortgage guidebook.