Sub prime lenders have moved online to offer their services nationwide. They finance mortgages for people with bad credit due to late payments, bankruptcy, or foreclosures.

Financial counselors recommend waiting at least two years to apply for a mortgage after declaring bankruptcy. But if you have a large down payment or cash reserves, then some sub prime lenders will accommodate your situation.

For other people with poor credit, a down payment is the quickest way to buy a house. A FICO score over 580 will require at least 5% down, while lower scores will need a larger down payment.

With online lenders, you can compare rates and terms to be sure you are getting the best home loan. The easiest way to collect mortgage quotes is to use a mortgage broker's website that gives you multiple bids from several different lenders. They do the work of collecting information for you.

Another alternative is to go to individual mortgage lender websites that specialize in poor credit loans. Such lenders will post that they will work with poor credit on their site. You can request a quote and compare it with other lenders.

Most lenders offer reduced fees or points for completing your application online. By using their streamlined process, they are able to save cost and pass the savings on to you.

Flexible scheduling is another benefit of online mortgage lenders. You can complete paperwork when it fits your schedule, not the banks. Online applications can be completed anytime, even at 2 am in your bathrobe. The final paperwork will have to be signed in front of a notary, but you can easily do that at any Kinko's or other office center.

You can also readily reach a customer service representative that can answer your question, rather than scheduling an appointment to meet with your designated loan officer.