Sub-prime second mortgage loans are the way to go if you have a poor credit history. Come clean with your lender, and ask them if you qualify for a sub-prime loan. If they don't offer them, they might be able to steer you to an institution that does.

When shopping for a second mortgage loan, don't just take the first good interest rate you see. Get quotes from at least one bank, one credit union, and one dedicated mortgage lender, and keep a close eye on the various fees charged, because they can add substantially to the cost.

If you can, stay away from mortgages that charge stiff default penalties whenever your payment is late or when you miss a payment. In most cases, the penalty will be not only a late fee, but a sharp increase in your interest rate that will really add up over the life of the loan.