Buying a House With Bad Credit is possible! Even in today’s Economic difficulties with people losing their jobs left right and center buying a house with bad credit and no money down for first time home buyers is manageable but beware buying a house with little or no credit does need to be researched! There’s more than a few ways a first time home buyer buying a house can get loans for credit in fact if you know what you’re looking for then this so-called recession that we live in could be of an advantage. Buying a house with bad credit or buying a house with bad credit and no money down can come to light if researched properly. House foreclosures are going for hardly anything due to the significant drop in persons buying houses. Of course most of the best deals shall depend on you having good credit. Never the least it’s still possible for first time home buyers to get loans with bad credit.
Millions of us have bad credit, so it’s quite a common question to ask if it’s even possible to buy a house with a bad credit rating? So yes it’s possible just much more difficult than it was a few years ago. I think one of the most important things to do is research all the options you might meet along the way.
One of the most preferable ways is the lease option. Now I’m guessing that most of my readers are living in rentals and so you’ll probably fall in to one of the categories below.
1. No Savings / or not enough for a down-payment.
2. Credit Cards / More than one maybe.
3. Multiple lines of credit.
4. You’ve received a debt collectors bill due to missed payments in the past.
5. An earlier Bankruptcy or house foreclosure.
6. Rejected credit card application.
7. Banks and loan companies have rejected you in the past.
This is usually how the average Joe with not so good credit or a poor credit rating is forced to live. In fact it’s quite insulting living with poor credit because it doesn’t make sense that everyone else gets the chance to get credit cards, low percentage loans and mortgages and you can’t! In fact it just doesn’t stop you financially gaining assets, it really hurts your self-esteem and can have an overall effect on your character.
Buying a house with bad credit might just seem like a dream that shall never come true and the truth is buying a house with bad credit is possible but your going to have to do a lot of changes to make that dream come true. There’s a couple of things your going to have to change:
1. Work on a better credit score. Sounds too impossible? It might be impossible to get it done tomorrow but if you look at the long run and plan it out knowing that it might take a few years, then you’ll eventually get there. And once your there and you can show how you paid all that bad debt off, that shall surely turn in to more extra points by most lenders because they can see that you take your financial status seriously. Keep in mind this might take years.
2. Find a lender that deals in loans with bad credit. Someone that disregards your credit score and gives you a chance. There’s 2 kinds of loans that you might be able to qualify for: A bad credit secured loan or a bad credit unsecured loan. Now assuming that you don’t have any assets to put down that only gives you the choice for a bad credit unsecured loan. Yep and as you have guessed it, it’s also the most difficult loan to get because of the bank situation today, BUT that being said if you can show a solid repayment scheme then buying a house might be the dream come true for you.
3. If all fails there’s still hope and if you look around you can find it often and I’m talking about Owner Financing! It sounds great and could be great! Due to the fact that lots of house owners can’t even sell their houses many are willing to do Owner financing. Make sure when you take this option that you use a Lease-Option with owner financing due to the fact that it’s the safest for both parties involved. This is the easiest way that you can end up buying a house with bad or no credit.
So as you can see buying a house with zero credit is possible however obtaining a good credit rating should still be one of your main focuses. Please be sure to read all our other articles based on buying a house with bad credit and don’t forget to sign up for our newsletter for even more tips!