No matter if your mortgage company has not been able to approve you for your dream home, people with poor credit have more options than ever before. If you don't know your credit score yet, now is the time to find out.
Speak to a credit specialist and create an effective plan to improve your score over time. Show the mortgage company that you are serious about improving your credit. Next, do some research. Search for local mortgage brokers who specialize in helping those with credit problems; local newspapers and magazines may help you locate a specialist.
Advertisements often claim we can help you purchase a home regardless of your credit history, including bad credit or foreclosures. In certain circumstances, however, you may qualify for programs like 'purchasing a house with the option to buy' which allow you to make an agreement with either the landlord or homeowner.
A down payment of between $3000 and $8000 will be necessary. The higher your deposit, the lower your monthly payments will be. In some cases, they may contribute part of your rent towards purchasing the house you are renting if you have not missed any payments. After 12-24 months, your landlord or homeowner will convert your lease into a mortgage and turn it into equity. This will enable you to become an owner and boost your credit score. All transactions should be documented; in addition, hiring a lawyer to review any'rent with the option to buy' agreement can prove beneficial for those involved. If renting with the option to purchase isn't your style, there are other options.
Foreclosed properties can usually be acquired at annual tax sales and in many states you don't need excellent credit to buy a home. One thing is essential for the county or city tax office: a cashier's check or money order for the entire amount of the sale.