You've searched high and low around town looking for that special home for you and your family. Everyone agrees that "this is the one"! Your down payment for the home is large enough, but you know your credit is terrible, or worse, practically non-existent.

It is a given that banks tend to lend money to people who a) have enough cash that they don't need a loan; b) possess good to very good credit.

Another nightmare with having bad credit is the closing costs. On conventional loans designed for individuals with credit problems, closing costs can be considerably higher. The higher interest rate will also cause the monthly payment to increase.

In addition, the percentage of the down payment needed towards the real estate cost will also increase. The required down payment for credit-impaired applicants can easily be 10% to over 20% in some cases.

Based on a $100,000 home, this could easily equal $10,000 to $20,000 in down payment towards the real estate cost- not including closing costs.

Some of you reading this might be thinking aloud, "Yeah, that's just how the system is, right"? Not much can be done about my bad credit.

Although the "system" appears to be working against you, you can still get the dream home you desire.

Fortunately, there are little, but very effective techniques being used by people to establish AAA credit, wipe out debts, and proceed to get the house they want. All in the same time period.

A good idea would be to start with your credit. If you have non-existent credit, you can apply for (and receive) credit cards that will build up your credit score. These credit card companies report to the major credit bureaus that you've been paying your credit card bills each month.

During this time, you can look for funding programs that would be willing to listen to your situation. They want to help you obtain the funding to purchase that new home you want.

Such funding programs like to work with the seller exclusively, (For Sale By Owner). No bank red tape or real estate agents to turn you down for financing. It's just you, the funders, and the seller.

There are programs out there that can help you, but you must be very careful when choosing one for you and your family. Look for programs that are legal in all 50 states, have qualified professionals in their field, and will offer you one-on-one consultations.

In conclusion, you and your family can still receive the American Dream. Just taking these steps outlined above can get you there quicker than you ever thought possible.