For most people, the idea of going from renter to homeowner seems out of reach for one main reason: poor credit history. Many feel that because of their past credit problems, they have no chance of qualifying for a mortgage to own a home. In recent years however, many lenders have made it easier for those with not so perfect credit to qualify for a mortgage.

In fact, even having a Chapter 7 or Chapter 13 bankruptcy is no longer the deal breaker it once was says Michael Hart, a senior loan advisor with Anderson Lending Group in Peachtree City, Ga.. Lending guidelines have relaxed considerably over the last couple of years to the point where its now easier to qualify for a loan than ever before.

The three main factors of most concern to lenders are: credit score, job history and income. Your credit score is the main determining factor. The higher your score, the more options youll have with any lender. Secondly, if you have fairly stable employment and income, chances are youll qualify for a home loan. And if your credit score is high enough, even with a past bankruptcy, you may well qualify for a 100% loan with some lenders.

The secret is in knowing where to go and how to shop for a mortgage. And you have to be careful, with loans being so easy to obtain today, its easy to get yourself in a situation where youre overextended. A good mortgage broker should be able to help you determine whats best for you based on your own personal circumstances.

Keep in mind the fact that lenders will charge higher rates on loans to those with past credit issues to offset the higher risk associated with making the loan. Its up to you as the borrower to determine if the potential advantages outweigh the higher cost involved. A new loan can provide the opportunity to re-establish yourself as a good credit risk by making timely payments. Other positive aspects to consider are the tax benefits of home ownership and the possibility that the home may appreciate in value.

Most everyone wants the security of owning their own home, and now that opportunity is available to more people than ever before. says Hart. You just have to make sure youre being realistic in what you can afford. Talk to a mortgage broker to see if and what you qualify for. Then be sure to use your head, not just your heart, in your search for that new home!