The goal of home ownership can seem like a daunting process, especially when you don't have a good credit situation or struggle with too much debt. However, with the right knowledge, getting to be a homeowner can be a much simpler process and an attainable goal. Here are some recommendations to help you get into a home that you can buy despite a bad credit situation.
Look For the Right Seller Situation
To buy a house you don't need to qualify for a traditional bank mortgage. In fact, you can find a person willing to lend you the money who already owns the home. In this type of scenario you would buy a house from a seller who is offering to finance the payments and the mortgage to you. This essentially means you would take ownership of the home with a transfer of title and the seller would hold the mortgage note and allow you to make payments over the next period of time. So instead of paying your payment of principle and interest to a bank, you would pay it to the seller, who is selling their property and earning interest on the entire purchase price.
Keep in mind not all sellers will be willing to accept seller financing to buy their home. But don't be afraid to ask a homeowner if they would be willing to finance the house to you. You might find that once you educate them on the process and their benefits, they are willing to do it. They would hold the mortgage note and have power to foreclose on the loan if you fail to pay the agreed upon payments.
Consider a Rent To Own
A second option to help you buy a house without bank-accepted credit is to look for a home advertised as a rent-to-own. This type of situation provides you the means of moving into a home and beginning a rental agreement with the intent to purchase the home. The details in the contract are important, as you can take several months or years in the rental agreement before you decide to buy the house.
During the time in which you are renting, you can work on improving your credit, paying down unsecured debt, and boosting your credit score as a result. Each rental payment you make will go toward the rental agreement and a portion of each can go toward a down payment or toward the home's purchase. Then, after the agreed-upon rental time, you would be able to buy the home using your own credit.
Learn more about no credit financing in Houston, TX today.