Info about Credit
How to Buy a House with Bad Credit!
If you have bad credit, you probably understand that getting a mortgage in the current lending environment is probably out of the question. Subprime lending is gone and the lending products that remain have tighter guidelines than ever before. Still, if you are serious about owning a home having bad credit does not mean that you will have to give up on your dreams. You simply need to consider creative solutions that will help you achieve your goals.
Rent to own houses are becoming more and more popular with people just like you! This is a great way that you can move in the direction of your dreams. Renting to own gives you the ability to lock up your dream home now and allows you to enjoy it while you are working on repairing your credit.
Another great advantage is that you begin building equity right away. When you lease to own, a portion of each monthly payment goes towards the purchase price. Additionally, you will get the benefit of any appreciation that takes place over and above the agreed upon purchase price. This means that when it comes time to do a mortgage, chances are that you will be required to make a very minimal down payment over and above what you already have in the home. Another advantage is that presently, as long as you have been in the home for 12 months when it comes time to get a mortgage, most lenders will treat the transaction as a refinance. This means that the appraised value not the purchase price will be used for valuation. This can mean that you don’t have to put anything down and are able to roll all of the closing costs into the financing. (Of course, you should always be prepared to make a down payment because you never know what will happen with lending guidelines.)
So, if you can’t get a mortgage right now, don’t worry! You don’t have to give up on your dreams!