Every person dreams of owning a home at some point in their life. Unfortunately, some people may not have the means to make this dream a reality. Unfortunate circumstances such as bad credit can prevent individuals from qualifying for a mortgage. Although it may seem impossible to obtain a mortgage with bad credit, there are ways to buy a house without a down payment and with bad credit. Read on to find out more.

Step 1: Raise Your Credit Score
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If you are looking to qualify for a mortgage, it is imperative that your credit score is above 600. Even if a financial institution offers a mortgage to someone with bad credit and without the funds for a down payment, your credit score has to meet the minimum requirements. You will want to order a copy of your credit score and decide on which loans you can pay back to raise your low score.

Step 2: Contact A Mortgage Broker
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The majority of companies which will provide you with your mortgage prefer applicants who have good credit and enough money for a down payment. With the help of a mortgage broker, you will be able to have a professional find you a bank which will lend you the money for your mortgage. It is important to remember, mortgage brokers generally work on commission, therefore determine if there are any fees associated with the broker you select.

Step 3: Rent-to-own
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Rent-to-own properties have grown in popularity as more people are being over-encumbered by debt. With a rent-to-own property, you will be able to have a house meanwhile pay rent which goes towards the total down payment for the home. Once you have increased your credit score, you can apply for a mortgage loan to acquire ownership of the house.

Step 4: Consider Co-signers
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Co-signers can assist you greatly with getting a mortgage with bad credit. Co-signers are liable in the event of you defaulting on your loan, therefore you will want to choose a co-signer who is close to you, such as a family member.