Want to buy a house but have a bad credit?
WANT TO BUY A HOUSE BUT HAVE BAD CREDIT?
For those with bad credit, buying a house may seem to be more of a fantasy than a goal. Everywhere you turn, you see advertisements for great mortgage rates as long as you have good credit. However, although it is realistic to expect that bad credit may prevent you from getting your first choice for credit cards, car loans and real estate rentals, there are options that make your dreams of buying a house possible. You’ll just have to work a little harder to realize them.
- Rent to own. This is often a way to get into the home you want right away while you work on rebuilding your credit. In these situations, you may be expected to pay extra rent, which will eventually go toward the purchase of the home.
- Get seller financing. A motivated seller may be willing to finance your purchase instead of having you go to a bank or lending company for a mortgage. You may still be required to pay a down payment, however, and you should make sure your purchase agreement/contract is free of any sneaky clauses and tricks by having a legal professional review it.
- Get a co-signer. If a friend or family member with good credit is sympathetic about your bad credit situation, you might be able to talk her into co-signing your mortgage loan. Just remember that this helpful person will be liable for your mortgage debt if you fail to keep up your end of the bargain.
- Apply for an FHA mortgage. FHA loans typically allow at least some leeway for those with blemished credit.
- Put a hefty sum of money down on your home. If you are able to put between 10 and 20 percent or more down on your new home, you may find lenders more willing to work with you.
- Spend a year or so fixing your credit and paying off your bills. Then apply for a loan after you’ve done so. Although your credit won’t be perfect at this point, you may have a better shot at getting a mortgage.
- Use a mortgage broker who specializes in problem credit loans. He may be able to provide you with more options than a traditional agent can.
There are several programs offered by the government or non-profit entities that can be right for you. Consult with a real estate professional.
Please feel free to contact us for more details on this subject.
Boneli Real Estate & Management Group, LLC your Tampa Bay real estate consultant!