Past credit problems don't have to ruin your chances for being approved for a Home Purchase Loan online. There are lots of ways you can get a mortgage from an online lender, even if you have bad credit. But remember, you may have to deal with a few negative things that you wouldn't have to accept with a conventional loan.

Higher interest rate.

Because a bad credit history makes you a risky borrower from the lender's point of view, expect to pay anywhere from 2-3% more on your Home Purchase Loan interest rate. This can translate into thousands of dollars by the time you pay off your loan. However, you may be able to get a bad credit mortgage that allows for the interest to decrease over time as long as you faithfully make your payments.

Higher fees and charges.

Expect to pay higher fees for most things--like your closing costs--plus extra charges. Since you're a high-risk borrower, the lender will want to cover possible losses by passing along the extra costs to you. In some cases, you may pay 5%--or more--over the average fees on a conventional loan. Chances are this means hundreds more in additional charges.

Mortgage insurance.

Typically required only for folks with no or a low down payment, your lender may insist on this insurance which covers the mortgage in the event that you do not make payments. You can legally stop paying this type of insurance once the equity in your home reaches 20%, and your lender may require you purchase it until that time.

If you're willing to accept these terms, you should have no problem finding a Home Purchase Loan online. It's also important to note that the larger your down payment, the less of a risk you present to the lender. So a significant down payment could get you a lower interest rate and fewer fees, even if you have bad credit. If you have the time, it may be worth it to take six months to clean up your credit a bit and save more for your down payment.

Carrie Reeder is the owner of http://www.abcloanguide.com. View her recommended sources for bad credit home purchase loans online.

View her recommended bad credit mortgage quote lenders online. Also, view her recommended online companies to help you with debt restructuring.