DETROIT -

If you're in the market, you can find a great deal on a home right now, but even if you find a great bargain on a house it can be tough to get a loan.

Experts say lenders are reluctant to loan money to anyone with less than great credit. That's why home buyers are turning to family, friends and the internet for help.

Experts warn if you're loaning to family or friends to be careful and follow these steps:

  • Set an interest rate
  • Set due dates for repayment
  • Have penalties for missed payments
  • Consider having your deal reviewed by an attorney


Another route some people are taking is "peer to peer" lending. Websites like Lendingclub.com and Prosper.com

allow people to post their loan proposals. Investors add a word of warning - those loans can be more expensive with higher interest rates.