Buying a house is in reach for those with poor credit histories. Even with bad credit, you can secure a mortgage with reasonable rates and terms. Before you assume you have a low credit score, check your credit report. If you do have adverse credit, plan on getting the best rates possible by following these three tips.

1. Up Your Down Payment

Besides your credit report, your down payment will greatly affect the rates you qualify for. In some cases, its possible to qualify for conventional rates with a large enough down payment.

If you have an especially low score due to a recent bankruptcy or foreclosure in the last year, you may be required to put down 50% of the homes value. It is possible to get a mortgage with no cash down, but your rates will be much higher.

2. Be Flexible With Your Terms

Your loans terms can also vary rates within a point or two. Adjustable rate mortgages will start out about a point less than fixed rate mortgages. This will also help you qualify for a larger mortgage. But you may find your rates and payments increase in the future with an ARM.

The shorter your home loan, the lower your rates. You will also save thousands in interest cost simply by having a shorter loan.

Some lenders have additional discounts for automatic payments. You also have the option of buying down rates, which can be a real savings if you keep your loan for several years.

3. Take Time To Compare Lending Offers

Taking the time to compare lending offers is the surest way to save money on your mortgage. A difference as little as an eighth of a point will save you thousands on interest. So just like you spend hours searching for just the right house, so you should spend time researching lenders.

With online financing companies, you can quickly gather information to make your mortgage decision. Mortgage broker sites can get you multiple loan estimates in minutes. You can also get loan quotes through individual lender sites without hurting your credit score.