Tips for Buying a House with Little or No Credit

384e2dadddd545fca5265a9093f86a31Whether you are a first-time home buyer or a seasoned real estate veteran, buying a house is stressful, especially when you’re dealing with bad credit. Unfortunately, a good deal does not wait on your credit to improve. So, if you’re in the market to buy a house with little or no credit, here are some of the best tips that you can take to the bank.

First, take stock of your advantages with the government.

If you hold special status with the government, you may be able to receive certain discounts. People who have served in the armed forces, farmers or disabled individuals have certain programs within the government that may help them make the initial down payment on a house.

If you fit any of these statuses, it would benefit you to get in touch with your local Chamber of Commerce or representative to see exactly what you can do for yourself. Your municipality may also have opportunities for people who fit other categories as well.

Contact your local government office in order to find out exactly what you can obtain.

Second, you can begin the ownership process through a rent to own program.

If you do not have enough money for an initial down payment, you may be able to find a buyer who will let you rent the property first with the option to own later. This is known as a “rent to own” agreement, and it is becoming much more common in the modern economy.

Although you will probably be paying more over the life of your agreement, you will be paying less in month-to-month expenses with this approach.

Third, you can start a cooperative effort to buy a house.

There are certain cooperative techniques that can be done in conjunction with the bank that will allow you to purchase a house with no credit. If you have one or more cosigners who are willing to help secure a loan, you may be able to go into a cooperative agreement with the bank for the money that will help you to make the initial down payment for a house. You may even be able to use this technique without a bank if you know individuals with the appropriate finances.

Fourth, reduce your debt.

While it IS possible to buy a house with bad credit, it may not be in your best interest. No matter how good a deal appears, buying a house with heaps of debt is never the best approach. Instead, start looking for ways to lower your debt. Nonprofit organizations like CreditGuard are great resources for people who are struggling to make ends meet. They’ll contact your creditors and work with them to help lower your rates and consolidate your bills, making the repayment process much easier—and faster.

These are far from the only ways to make a house purchase with little or no credit. However, if you’re looking to get into a home quickly, one of these tactics should serve as a good start.


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  1. Kathy says:

    Against our better judgment, we are selling a house via lease with option to purchase. We chose that route over contract for deed because if the buyer defaults, it is much easier to end the contract. Under CFD, we would have to go through foreclosure proceedings. The buyer couldn’t qualify for a traditional mortgage but did come up with a down payment. It would be extremely difficult for us to sell the house due to its’ condition and since the buyer really wanted it, it stands to be a win-win for both of us.

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