If you are considering applying for some form of bad credit home loan, it is worth looking first at the positives and negatives. Looking at a standard bad credit home mortgage you should consider the following:

-Interest rates are much higher than any kind of standard mortgage. This is almost like a ‘safety net' for the banks, so that if you fail to reach a repayment, they take so much more money in interest that they can afford to wait a bit longer.

-Black listing. This happens to everyone, even on a standard mortgage loan. It involves a ‘black spot' appearing on your credit checks for if you fail to pay and have your home repossessed. It can take a number of long years for this mark to disappear or be overlooked, and even then it can still make your life just that little bit harder.

-Hidden costs. There can, in some cases, be hidden costs added to your bad credit home mortgage. This seems almost like a punishment for a bad credit score, but nevertheless these fees do have to be paid and they are 100% legal.

Now let's look at the good things:

-You own your house. Nothing can take that away from you, unless you do not meet the repayment schedule of course. You gain some extra monetary security knowing that your house could build equity, despite the fact it was purchased using a bad credit home mortgage.

That's about it. As you can see, the disadvantages greatly outweigh the advantages. During the past twenty or so years a scheme has been developed to help people that are looking to buy property, but do not want to apply for bad credit home loans. It is called the residential property acquisition program. The advantages of buying a house using this facility are:

-You do not need the involvement of any banks. The properties are purchased by outside investors. You will still need to follow a strict repayment plan, but the money is paid to an individual that will pay the appropriate fees directly to the broker.

-The house is owned by a trust, meaning it that you and the investor are safe from creditors and banks.

-Safety. You and your new house are safe. No eviction notices can be posted for any reason other than you miss several repayments.

On the downside, you have to pay a reasonably large deposit. This is generally set at around 15%. The cost is quite high, obviously to protect the investor.

Using the residential property acquisition program, the pros outweigh the cons! It is fast and easy to apply. This is a much better option than any bad credit home loans.

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