2 Ways To Buy A House If You Have No Credit
You have two primary options for buying a house if you have no credit or bad credit. Are you interested in learning more about these options? Many people are in the position of having bad or no credit. After all, building an excellent credit score takes time and work. What can you do if you are in this position and want to buy a house? Here are two of the best options you can choose from if you want to buy a home but have no credit.
Apply for an FHA Loan
The best place to start with buying a house with no credit is talking to a mortgage lender. While lenders offer numerous loan programs, the FHA program is probably the best option for a person with no credit. An FHA loan has restrictions and guidelines, but they are the easiest for people to meet. FHA lenders work with borrowers that have no credit or bad credit. They may be willing to offer loans even when borrowers do not meet the conditions they typically require. It does not hurt to apply for a loan or talk to a lender about your situation. The worst answer you can find out is that you cannot get a loan.
Shop for a House Offered for Sale Through Lease to Own
The second option you have for buying a house with no credit is to shop for a house offered for sale through lease to own. A lease-to-own deal is one where the homeowner issues you a loan to buy the house. You put money down on the deal and make payments to the homeowner. You take possession of the house, and you can use the house however you would like.
The benefit of this option is that you do not need a loan. The homeowner is your lender, and he or she holds the mortgage for you. You must follow through with your part by making the payments to the seller of the house. You must also get a loan after a specific time, such as five or ten years. During this time, you can work on building your credit so you can qualify for a mortgage loan when you reach the end of the lease-to-own contract.
If you are not sure how to proceed with buying a house, talk to a lender or a real estate agent to learn more about your options. For more information, speak with a professional who knows how to help people get no-credit financing.
