How are you going to get accepted? - If you get 100% financing on your mortgage, you don't have to pay a down payment. This means that the other things that go into your mortgage loan are more important. For example, you will need to have a higher income, a job, a recent payment history, and a low ratio of debt to income. If you can improve some of these things, your chances of getting approved will go up. If you can find a home with a low loan-to-value rate, that could also help your chances of getting approved. Look around. Try to find a home that is being sold for much less than its appraised value.
What Are You Going to Hurt? - A very recent bankruptcy or foreclosure. Even though it's not impossible to get financing in this situation, it's more likely that you'll need a down payment of some kind.
Watch out for scams involving subprime mortgages - People with bad credit are often charged higher interest rates and more fees than they should be. If you have bad credit, you can expect to pay a slightly higher interest rate. To make sure your rate is competitive, compare it to at least two or three other loan offers.
What about mortgages that come after a bankruptcy? - You can expect to have to wait about two to three years after your bankruptcy is over before mortgage lenders will be willing to work with you again. But it's not impossible to get a mortgage loan before then; you might just need a small down payment.
Watch out for the pre-payment penalty. Mortgage lenders who give loans to people with bad credit often add a pre-payment penalty to the loan. If you're okay with a prepayment penalty, make sure it's for a reasonable amount of time, like 6 months to a year. You don't want to be stuck with interest rates that are too high for too long.
