Many homeowners consider obtaining a second mortgage when their cash flow gets a bit tight. And it tends to be an inexpensive type of loan, because the interest rates are typically lower than other types of loans. Moreover, in many cases the interest you pay throughout the year is tax deductible, lowering the cost of the loan even more. But can you still get a second mortgage if you have poor credit? Yes! In fact, some lenders specialize in working with folks who have a shaky credit history.

Your first step should be talking to your current mortgage lender. If you usually make on-time payments, your current lender might be willing to give you a second mortgage even if you have some black marks on your credit history.

If you do get approved for a second mortgage, it doesn't hurt to shop around. Try browsing your local yellow pages, asking family and friends, or searching online for another lender so you can compare rates and fees. It's best to have at least two--three or four is better--different lenders from which to choose so you know you're getting the best deal.

Remember: you will have to pay a slightly higher interest rate on your second mortgage. If you have poor credit, your lender will charge you more simply because you're seen as a "risky" borrower. Moreover, second mortgages generally have higher interest rates than first mortgages because they're a riskier loan. In the event you default on the loan, it's your first mortgage that will get paid first after your home sale.

Since your house is collateral on the loan--which means it can be taken away if your loan goes into default--it's important to only get a second mortgage if you're absolutely certain that you'll be able to make regular, on-time payments.