Most buyers believe their credit isn't high enough to own today so they are often searching for Lease Purchase, Rent to Own, or Owner Finance homes in Atlanta GA. However, their credit score may not be that far off from qualifying to buy within the next year.
Many South Metro Atlanta potential homes buyers now have more options towards owning a home than they may realize. Sellers, and some lenders, are now offering homes for sale with flexible purchase terms that may allow prospective buyers to own a home faster if they find the right source.
Owner Financing is still a great option to buy because buyers can still obtain the First Time Home Buyer Tax Credit with a purchase. The State of Georgia also offers an $1,800 although this is spread out over 3 years tax returns. The Federal Tax Credit is only available until the end of November 2009. Owner Finance home buyers can get credit development assistance to refinance into FHA financing over a reasonable period of time.
There are still rarely heard of, government backed, FHA financing options available for buyers with credit scores as low as 530. Some restrictions and qualifications still apply, but what these lenders are looking for is a relatively clean past 12 months. With little or no credit, many buyers can still get these loans.
Lease Purchase, Rent to Own and Owner Finance home shoppers in Atlanta may still qualify if they have:
* 3.5% for a Down Payment of the Home's Purchase Price
* Have no new Non-Medical collections over the last 12 months
* Have no 30 day late payments on their current credit accounts
* If no active credit lines are open, you must have 3 non-credit accounts (Rent, Utilities, Cell Phone, etc.) that have been paid on time for 12 months
* If there is a Judgment, there must be evidence of a payment plan in effect for 12 months.
* Have had 2 years seasoning since a past Bankruptcy
* Have had 3 years seasoning since a past Foreclosures
* Have had 2 years seasoning since a past Repossession
* Little or no credit can still qualify with On time payments for Non-Credit Accounts
Rent to Own, Lease Purchase and Owner Finance are still great options to buy if you can't get traditional financing today. But buyers should not be discouraged by what the see or read in the news about how hard it is to get a loan. They may just need some guidance and find the right source to get them over the hump in order to take advantage of today's great buyer opportunities.
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