Buying a home with no credit can be difficult, but it's not impossible. With these three tips, you may be on the path to home ownership faster than you ever imagined.
Visit Your Local Credit Union
Whether you have no credit or bad credit, a credit union can help you build your credit better than a traditional bank can. A credit union is more likely to extend you a small amount of credit as long as you have a job and the means to repay it. Credit unions are usually willing to give you a collateral loan as well. This is where you deposit a certain amount of money, which is held as collateral, and they give you a loan on your money. The loan period is typically short, such as six months. You pay it back on time and they report it to the credit union.
While you're there, you can also meet with a mortgage lender. They will go over not only your credit but loan programs you may qualify for that don't have credit or down payment requirements. For example, if you or your spouse are a veteran, you may qualify for a home loan that has very few requirements. The Federal Housing Administration also offers similar loans.
Schedule An Appointment With A Real Estate Agent
While most people buy their homes with conventional financing, this isn't the only option. Some homes spend a very short time on the market while others linger much longer. This can be an advantage to buyers who don't have credit.
Oftentimes, the homes that linger are starter homes or homes that are outdated. For example, it's not uncommon for homes previously occupied by senior citizens to be old-fashioned and have anything but trendy décor. Their heirs want to settle the estate, but until the house is sold, everything is up in the air. This is a situation where the owners may be willing to serve as the lender, at least for a couple of years until the time you can obtain conventional financing. Most real estate agents know of at least a few homes where the owners may be willing to get creative with the financing if it means making a sale. Additionally, some real estate investors specifically specialize in selling homes with no credit necessary.
Come Up With As Much Money As You Can
If you can come up with a substantial down payment, lenders are less likely to require stellar credit as their risk is lower. Save as much as you can as quickly as you can and consider liquidating any assets you may have.
Contact a company, like SWE Homes, for more help.
Share6 May 2019
When I started looking for a new home, I realized that there were a few things I needed to be careful about. For instance, I really needed to focus on finding a home that would appreciate in value, so I began thinking about investing in the right property. After quite a bit of research, I was able to find a great neighborhood that had a big support system for my family. After we found a house we loved, we worked with a real estate agent to procure it, and it was really nice to feel like we belonged somewhere. Read this blog about ways to find amazing pieces of real estate the first time around.