How To Buy A Home With No Credit
Buying a house typically requires getting a mortgage, as most people do not have enough cash to use for their purchases. If you need a mortgage, the lender will check your credit. What happens when the lender finds that you have no credit? Can you still get a loan to buy a house, or will you need to use a different method to purchase a home? Here are several things you should know if you have no credit but want to buy a house.
Find a Lender Willing to Give You a Loan
If you want to buy a house with a loan but have no credit, your first step should be to find a lender willing to provide you with a loan. How do you find a lender that will give you a no-credit loan, though? You can find one by calling around, and you should look for lenders that advertise they offer loans to people with bad credit or no credit. Some lenders issue loans to people with bad credit or no credit, but it might require more work.
You can also talk to a real estate agent to determine if the agent knows of any lenders that issue loans. The agent might give you some tips to help you find a lender like this and improve your chances of getting approved.
Buy a House Lease to Own
If you experience trouble finding a lender that is willing to give you a loan, there is an alternative method you can pursue. This method involves buying a house through a lease to own deal. A lease to own deal works like this:
- You find a seller willing to finance your loan
- The seller keeps the loan on the house
- You make house payments to the seller and provide a down payment
- You live in the home and use the home however you wish
- You get a loan in a specific number of years
Buying a house through a lease to own deal requires finding a seller willing to sell with this method. Most sellers are not willing to do this, as it requires keeping the loans, but some are willing. Your real estate agent can help you find homes that you can purchase through a lease to own deals.
If you have more questions about no credit financing, start by talking to a real estate agent and a lender.