Buying a house when you have poor credit can often be a very difficult and frustrating experience, mostly because it can leave you in a situation where you feel like you are going to have to wait for years in order to improve your credit before you can get into a decent home. However, there are options available to you that can help you buy a home with poor credit, such as the two listed below.
Apply For Specialty Loans
One of the first things you should do if you are looking into buying a home with poor credit is to do a bit of research and see if you qualify for any specialty loan options. For example, FHA loans are available that Are extremely popular with homebuyers that have poor credit because it typically has more lenient requirements in terms of credit score and down payment amount. In addition, consider speaking to a lender about a VA loan if you have ever served in the military because depending on the length of your service in the military you may be eligible for a loan regardless of your credit score and be able to get a home loan with a lower down payment.
Consider Rent-To-Own Homes
Another option to consider when buying a home with poor credit is to consider rent-to-own homes. Rent-to-own homes are typically offered by the homeowner to individuals in exchange for a substantial down payment and larger rent payments than you would otherwise have to pay for a similar rental home.
In exchange for that down payment and higher rent, you are essentially locking in that home for a set number of years in which you are expected by the homeowner to improve your credit score and actually get a traditional home loan in order to purchase the house. The benefit to this approach is that you typically do not need to have a certain credit score or even go through a credit application for many rent-to-own homes, you simply need to prove that you can afford to pay the rental payments and provide the down payment.
Speak with a real estate agent or real estate professional today in order to discuss what options are available to you when it comes to purchasing a home with poor credit. Applying for specialty loans and considering rent-to-own homes are both good options to consider if you want to buy a home but have poor credit.Share