If you’re living with a devastated credit score, you probably assume you’ll never qualify to purchase a house. Before the mortgage industry crashed, an individual who suffered through a previous bankruptcy would be able to get a home loan in just over 12 months. The current lending disaster has forced many lenders to impose stringent requirements to qualify for loan.
Mortgage lenders tend to place greater priority on an individual with a high FICO score. If you have less than perfect credit, there are strategies to help you buy a home. With some diligence and perseverance, you can rebuild your credit history so you can qualify to purchase a home. Expect the process to take six months to twenty four months before you’re able to qualify with acceptable credit.
If you can convince a potential lender your financial dilemma was due to reasons beyond your control (such as divorce, business failure, medical bills, unemployment) or provide evidence you’ve become financially responsible, you might convince the lender to give you a second chance. But you need to be aware trying to restore your credit requires long-term planning, preparation, and hard effort.
If you haven’t suffered a devastating bankruptcy or lived through a financial dilemma, but have poor credit due to other predicaments such as self employment or just starting a new job for less than two years, you’ll still struggle with getting a home loan. Because the mortgage market is continually fluctuating, it’s best to consult with a reputable home loan representative or mortgage professional about your choices.
One viable option that works when traditional lenders won’t work with you is owner-will-carry (OWC) financing. If you’re struggling to establish your credit, have little in the way of savings, and earned little more than minimum wage, this avenue can help you enter the world of home ownership. Homeowners who are amenable to this type of financing are typically mature sellers who are frustrated with supervising their rental properties, but still want the monthly cash flow a rental property brings.
These sellers are eager to unload their properties because it frees them from the hassles problem tenants, clogged sinks, and faulty air conditioners. They also receive a great return on investment which surpasses the amount they would receive from a bank savings account or CD account.
The beauty of owner or seller financing is the flexibility to work with any home buyer a seller can come to agreement with. If a traditional bank won’t consider your application, explore the alternative of OWC financing. In fact, you may choose to circumvent regular financing and try OWC financing as your first alternative. Many real estate investors and home buyers depend exclusively on this financing option without fretting about qualifying with a traditional bank loan.
Article kindly provided by UberArticles.com
Topics: Real Estate FSBO | Comments Off
MLA Style Citation:
Shimanski, Sarah P. "Buying A Home When Your Credit Won’t Qualify You For Bank Financing." Buying A Home When Your Credit Won’t Qualify You For Bank Financing. 21 Jun. 2010. uberarticles.com. 1 Oct 2014 <http://uberarticles.com/real-estate/real-estate-fsbo/buying-a-home-when-your-credit-wont-qualify-you-for-bank-financing/>.
APA Style Citation:
Shimanski, S (2010, June 21). Buying A Home When Your Credit Won’t Qualify You For Bank Financing. Retrieved October 1, 2014, from http://uberarticles.com/real-estate/real-estate-fsbo/buying-a-home-when-your-credit-wont-qualify-you-for-bank-financing/
Chicago Style Citation:
Shimanski, Sarah P. "Buying A Home When Your Credit Won’t Qualify You For Bank Financing" uberarticles.com. http://uberarticles.com/real-estate/real-estate-fsbo/buying-a-home-when-your-credit-wont-qualify-you-for-bank-financing/
Comments are closed.
Uber Articles and its partner sites cannot be held responsible for either the content nor the originality of any articles. If you believe the article has been stolen from you without your permission, please contact us and we will remove it immediately. If you have a problem with the accuracy or otherwise of the content of an article, please contact the author, not us! Also, please remember that any opinions and ideas presented in any of the articles are those of the author and cannot be taken to represent the opinions of Uber Articles. All articles are provided for informational purposes only. None of them should be relied upon for medical, psychological, financial, legal, or other professional advice. If you need professional advice, see a professional. We cannot be held responsible for any use or misuse you make of the articles, nor can we be held responsible for any claims for earnings, cures, or other results that the article might make.