How to Buy a House with No Credit

learn how to buy a home without a credit check
How to Buy a House with No Credit

Many people buy a house then have to move within a few years, due to divorce, relocation or financial difficulties. Without any equity though, it can be nearly impossible to find buyers and they still have realtor fees to contend with. Now there is a way to offer these people a way out and obtain a beautiful house for yourself, without a credit check.

Many Homeowners are not aware that they can sell their homes by lease option. That is where your knowledge can be of benefit.

What is a lease option?

A lease option is the right to buy a home at a predetermined price within a fixed period of time. An initial deposit is usually made of a few thousand dollars and monthly payments are usually applied to the purchase of your home. You can convince a buyer to lease option their house to you by educating them on the benefits to both you and them.

What are the benefits to them of selling their house to you by lease option?

They are guaranteed that you will buy the house at a predetermined price within a specified period of time and they have their payments taken care of each month. Plus they retain the tax benefits of hoe ownership.

Q What are the advantages of buying a home by lease option?

When they lease option their house to you, they sell the right to purchase their home at a set price within a predetermined period of time. During that time, you, the purchaser of the lease option, pay a set monthly fee. Instead of wasting your money on rent you can purchase their house within a certain period of time and have part of the monthly fee applied to your final purchase price.

By buying your home in this way, you avoid realtor fees and some other closing costs. You also put money that would have been thrown away on rent into eventually owning your own house.

They are able to avoid realtor fees and some closing costs plus they have a tenant (you) who intends to purchase their property. They can feel safe knowing that you will take better care of the home than a renter would and may even fix it up a bit since it will one day be yours.

Q How long does it take before you make a final payment?

A That depends on a number of different factors. Many people with less than perfect credit can rebuild their credit and receive a mortgage from a mortgage broker within 6 consecutive payments.

Q Why don't I just buy the house outright? If you have bad or poor credit, it may be difficult to find financing. If your payments are applied as rent credits though, it will be much easier to get a loan.

Q What if I decide not to buy the house?

A If you decide not to buy the house in the predetermined period of time, you can either renew the option, or cancel losing your initial deposit. A lease option is merely a right to buy at a certain price, within a predetermined amount of time.

Caterina Christakos is an independent real estate investor and facilitator. For more information go to:

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Written by Caterina Christakos (c)2001 for more writing tips check out:

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