Buying a home with bad credit used to be easy. Nowadays, mortgage lenders have stricter requirements, which make it difficult for borrowers with good credit to qualify for a home loan. Still, there are ways to get approved with less than perfect credit. Bad credit home loans do exist; but, you have to know where to look.

1. Save for a down payment: The best way to get bad credit home loans is to have a down payment. The higher the down payment, the better. Ideally, it’s good to have at least 20 percent. But, in today’s crazy inflated housing market, this isn’t usually feasible. In any case, save between three and five percent. Don’t forget to put money aside for settlement fees.

2. Maintain a good rental history: Even if you don’t pay your Visa or American Express bill, be sure to maintain a good payment history with your landlord. In turn, they may write a letter on your behalf. The mortgage lender may take your good rental history into consideration.

3. Buy Points: Since bad credit home loans involve a higher interest rate, consider buying points. This lowers your interest rate and creates a more affordable mortgage payment.