Home Buying with Bad Credit Tips
Home buying with bad credit is just one of thousands of search terms being searched by people wishing to buy a home each month according to Google. Google also say the volume for these search terms is in the hundreds of thousands each month.
And it’s no wonder with all the people who have lost their jobs, had their hours or pay cut pretty much destroying their ability to stay current with most if not all of their debts. And of course, the end result is a “catch 22″ where their ever dropping credit scores causes credit card and other lenders to raise their rates making it even more difficult to pay their debts.
I read some time back that the average credit score in America was around 680. I didn’t believe it then and I sure wouldn’t believe the average credit score in the U.S. today is anywhere near that number.
So what are the options for people trying to purchase a home with bad credit. In the go go days where people could get a sub prime mortgage with pretty low credit scores, even a 100% mortgage. Unfortunately, those days are gone. However, there is still hope for people wanting to buy a home with poor credit today. The secret that few in the media even mention today is seller financing.
Seller financing or as some call it, owner financing are the sub prime mortgages of today and it’s booming. There are two driving forces behind this form of home financing. They are 1) Desperate home sellers and 2) The extreme tightening of conventional mortgage lending standards so home (and commercial property) owners are resorting to seller financing. They are essentially becoming the bank in order to sell their property.
So how are prospective home buyers with bad credit able to get these loans? The key to home buying with bad credit is property sellers who offer seller financing rarely check credit. All they can think about is getting rid of their home or commercial property. How do I know this? Simple, I buy these private owner financed notes and I rarely have a note seller who actually checked their buyer’s credit.
The other piece of encouraging news for people home buying with poor credit is the sellers will often take an offer with 10% down or less. It’s could a problem for them if they need to sell their mortgage note and I certainly recommend to property sellers contemplating owner financing to check the credit of their buyers but as they say, facts are facts.
So if you have poor credit and want to buy a home, seek out motivated property sellers that either advertise owner or seller financing or those with little or no mortgage on their property. You might just be surprised what happens. Happy home buying.