This may seem strange coming from a mortgage broker, but if your credit excludes you from qualifying for a conventional mortgage, there are other options you can consider.
One is a lease purchase with the owner of the property. This usually involves a hefty down payment, which excludes most people.
Another option everyone should be familiar with are buy-here pay-here loans. They have been used for decades to sell big ticket items such as cars and appliances. Buy-here pay-here provides credit the old-fashioned way, between the seller and buyer, without the banks’ rules and credit guidelines. With banks tightening credit guidelines and lending to only A-list credit borrowers, the time is right to provide families who have been hit with credit problems the opportunity to achieve owning a home.
With buy-here pay-here loans, seller financing is already in place and ready to close.
Companies in this industry sell properties owned by real estate owned investors through a national property listing website that is different than other for sale by owner and Realtor websites. The websites showcase not just the home, but also the Realtor, the mortgage professional and financing terms that have already been approved for the property. No more having to guess if a buyer can qualify or even get approved for financing. The price, the property condition and the purchase terms are all posted right up front. Loans often are not limited to residential homes and also incorporate condominiums, vacant lots, acreage and commercial buildings.
The rates will range from 8 percent to 12 percent with a down payment of $1,000 to $1,500. The way I understand it, the payment is about the same as if you rented in that neighborhood.
So if you are interested in owning your own home and you have credit issues, you may want to look into this concept.
Karen Blondin, owner of Blondin Mortgage, can be reached at (941) 365-1926 or firstname.lastname@example.org.