How to Get a Home Without a Credit Check

If you have poor credit, purchasing a home may be nearly impossible, especially if you choose to go through traditional lenders. However, there are ways to buy a home without a credit check. Whether you have a past foreclosure, a low credit score from past problems or you simply don't have enough established credit to be considered for a traditional home loan, there are options available that will allow you to purchase your own home.

Step 1

Put together a down payment. Since you will not be going through a regular bank, you need to have money put aside to cover the down payment on a home. Typically, you should have at least 10 percent of the purchase price of a home saved, but increasing this amount to 20 or 30 percent can make it easier to finance a home without a credit check.

Step 2

Look for homes listed as offering seller financing. This is the best alternative for those with poor or no credit. Typically, sellers that are offering financing on their properties are doing so to get extra monthly income they can count on, or they may wish to avoid the taxation headaches that selling a property can bring. In many cases, they will not perform a credit check on potential buyers, choosing instead to rely on an ironclad seller's contract and their own instincts about the buyer.

Step 3

Put together an attractive offer for a seller. In order to increase your chances of getting seller financing, you must first make a good impression. Be on time for your showings, put a little extra effort into your appearance and be polite. Be upfront and honest if the sellers ask why you are interested in seller financing rather than traditional bank lending. There is no shame in not being able to qualify for a bank loan. Many people cannot and you are certainly not alone. Let them know that you have the cash available for a down payment and are willing to work with their terms. Keep in mind that seller financing may have a higher interest rate than bank financing.

Step 4

Work out a contract with the seller. This agreement should cover whose name the deed will be placed in. In some cases, sellers prefer to have the deed remain in their own names until the contract is complete. The agreement should also list who is responsible for repairs, closing costs, mortgage insurance, home insurance and property taxes. The agreement should spell out the amount of the down payment, and the terms and due date for payments. Keep in mind that if you default on a seller contract, they will be able to take back their property and you will lose your investment.

Step 5

Have an attorney well versed in real estate law review the agreement. It is worth the expense to ensure that both parties are well protected under the agreement. If it is satisfactory to both parties you can then sign the agreement and take ownership of your new home.

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