The banks keep refusing your loan application because you had some credit issues in the past, when you lost your job. But you are working now and have a good income, and even some money saved for a down payment. There is a good chance you can still buy a house with bad credit.
We all know that getting a mortgage is a lot more difficult than it used to be. And with the current state of the economy, it is more common that mortgage applicants need stellar credit histories to even be considered. So where does that leave the rest of us, who may have been late on a payment recently, or even worse, had to file for bankruptcy. Is there any hope for us? Can you buy a house with bad credit?
Well, the quick answer is yes, there is. But the rules are different, so you have to think more creatively if you want to buy a house with bad credit in this market, where prices are better than they have been in a long time, but banks are tighter with their funds than ever.
Although most lenders have stricter guidelines for lending, you could have a better chance at a loan with a local lender rather than a national company. Either way, you should expect to pay a higher interest rate if you have credit or employment issues.
Another avenue to consider is postponing your purchase until you work on and improve your credit score. There are plenty of resources for doing that, such as government credit repair guides.
Other things to consider that can avoid many of these issues is owner financing, something that is also more available these days, as home owners have difficulty selling their homes. Owner financing can take many forms such as:
Lease Option – lease the property for a specified period, during which you have time to improve your credit score and apply for a loan.
Assumption of Mortgage – Many home owners today need to sell, but have little to no equity in their homes. They cannot sell because a realtor won’t list it, and they don’t have enough money to make up the difference between what they owe and what the home is currently worth.
The bottom line is, home prices right now are at their all time best for buyers. Even if you cannot qualify right now for a mortgage, do not give up. There are other options for you to get the home of your dreams at a great price.
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Other Bad Credit Home Buyer News
Rent to own lease option to buy gives buyers time to improve credit. The Augusta Chronicle. Bad credit can keep consumers from many things but buying a good home shouldn’t These arrangements allow potential buyers to lock in a price for a house.
Kansas City Star. KC spent millions on 45 homes but can’t find buyers. Kansas City Star. If you’re looking to buy a house in Kansas City the folks at City Hall are ready Yet even some buyers who do qualify have bad credit scores and can’t get bank and more.…
Seller Financing Buying a House Without the Bank. AOL Real Estate blog Seller financing Buying a home without using a bank. As you probably already know it can be almost impossible to obtain a bank mortgage with bad credit. and more.…
Go Banking Rates. 3 Reasons to Start Caring About Your Credit Score Rating. Go Banking Rates. A bad credit score speaks negatively on your behalf basically a bad credit score Even if you do not want to buy a house any time soon your credit score.…
Should you rent-to-own a home KNDO KNDU. in the market for a new home but bad news if your credit rating prevents you option fee will become part of your down payment when you buy the house but and more.…
Preparing for your home purchase. HSH Financial Publishers blog But preparing for a home purchase needs to go beyond just the basics. For us with an 800 credit score more than 20 down payment long credit history low and more.…