Bank loans can be expensive to attain, but the low-interest rates and flexibility of long-term payments that banks offer are hard to beat. Maybe you don’t need money right now, but when you plan to invest in real estate on a broader scale and need to fund the million-dollar property, you’ll wish you had the credit needed to qualify for the loan.
However, buying a home with bad credit isn’t impossible. Here are the five ways to buy your dream house with bad credit:
- Consider Forming a Partnership
Alliances are among the best ways to invest in real estate. Partnerships help in the filling of the void. Perhaps your poor credit is the issue, but you might have something that your partners don’t.
Usually, when it comes to alliances, one must proceed cautiously. Do your research and thoroughly evaluate your partner to find great deals.
- Start Saving Money for a Down Payment
Saving for a down payment shows lenders that you’re serious about owning a home. Many with poor credit should consider saving more money for a down payment, which will help them get a better mortgage rate.
Since you put more money down, a higher down payment shows the landlord that you’re more committed to buying a home. Although there are mortgages that support 3% down payments, it’s best to look for more.
- Take Into Account Seller Funding
Seller funding is where the seller offers to repay the property instead of pressuring you to get a new loan. In other words, the seller continues to accept annual fees before the house is paid off (or the term of the seller-financed loan ends).
Since sellers often ask for a credit score, seller financing can be very successful. The best use of a seller-financed contract, though, is where the sellers buy the land outright. To put it another way, they shouldn’t have a lease on the house.
- Consider Borrowing from Private Money Lenders
Private money lenders are people looking for a decent return on their savings. Unlike hard money lenders, private money lenders are usually not real estate experts who lend money for a business; they are trying to diversify their cash into other investments.
- Get the Advice of a Housing Counselor
Speaking with a housing agent will help you consider various aspects of the home-buying process, such as financing opportunities and how to close on a property, and how the credit score can affect the process.
These are typically low-cost meetings to help you understand the complexities of being a homeowner.
Our credit repair company will help you buy a house with bad credit, saving you time and money. 007 Credit Agent, a credit repair specialist company with decades of experience, will create a credit recovery plan specifically for you. Get in touch with us today to schedule your appointment!