But even if you have a poor credit score, or even if you have just come out of bankruptcy, there is still hope for you in the form of the subprime lending market.

The subprime or alternative loan market came about out of necessity, as only around 20% of potential homebuyers could meet high credit score requirements. Lending institutions love people that can qualify for a standard mortgage and are eager to do business with them, but what about the other 80% that cannot qualify?

It would not make sense to ignore this group seeing as how they are clearly the majority, and so the subprime lending market was born out of the necesity to help the potential homeowners with an imperfect credit history.

In this article, I am going to lay out a great strategy for you that you can use to get a home loan or mortgage and pay far less than most other people do, even if your credit is as bad as a person who just got out of bankruptcy.

In many regards, the subprime lending market is the same as the prime lending market, and it is always possible to save by shopping around and speaking with different lending institutions to see what kinds of deals you can get.

So the first way that you can save money with your subprime loan is to talk to different lenders to find the deal that best suits your financial situation.

Also, realize that because most subprime loans are custom tailored to fit a borrowers specific needs, and that borrowers who must resort to a subprime loan have a bigger chance of not repaying, you can expect the interest rate to be markedly higher than it would be on a prime loan.

However, this is not exactly a bad thing, as the whole point of getting a subprime loan in the first place is to get the money NOW so that you can move into your new home, or make a home improvement, or whatever you need to do. Keep in mind that in the world of mortgages, the subprime market is pretty new, and there was a time when it was impossible to get a loan or a mortgage if you had less-than-perfect credit.

But how can you save money if you have a higher interest rate? Through refinancing. Even though you have a higher interest rate right now, do not feel like you are stuck with this loan forever. Refinancing is a great option for saving as much as a few thousand dollars every month (depending on the size of the loan).

So, here is your basic strategy for saving money on a loan, even if you have just come out of bankruptcy: Talk to a couple of different lenders about your specific financial situation, and find out what the best deal is that you can get on a subprime loan. It is normal for your interest rate to be around 8% or higher, the important thing you need to focus on is just getting the loan as soon as possible.

After you have secured your subprime loan, get to work on repairing your finances over the next 12-24 months (or just as soon as you can) so that you can now qualify for a prime loan or mortgage. After your finances are in order, work with either the same or a different lender to refinance your existing subprime loan into a prime loan with better terms and a lower interest rate.

Even though a subprime loan comes with a higher interest rate and maybe some other terms that may not seem to be beneficial, it is truly to your benefit because you can get your loan much sooner than if you were forced to qualify for a prime loan.