There can be a lot of things that can keep you away from getting the simple mortgage loan, and those things can include bad credit history, lower credit scores, last change of job and multiple income requirements. All such conditions collectively can be only termed as, ”bad credit”.
So, the question of the day is, are there any ways you can buy a house on bad credit? Well, ladies and gentlemen, there are some, and most of them are really effective if you use them correctly. So, let's begin the show.
1. Buy the home for Cash (Physical)
Using actual cash money carefully can help you get the house of your dreams. But now you must be asking how to manage such amount of cash to buy the house or anything on the spot? Well, to give you a piece of advice, you have to save money by buying things smartly. Just For an example, if you can afford a $600 car payment on the monthly basis, intelligently you can instead buy a used car for cash on hand and save that sum of $600 each month and eventually buy a beautiful, cosy house for that price. Add any unexpected windfalls and also other tax refunds to the money you saved and you can quickly set aside $8,000-$9,000 or even much more every year.
2. Purchase an affordable Mobile Home
Mobile homes have tremendous advantages, they include multiple features, a biggest one, in this case, is the lower price, compared tothe site-built homes. This will also benefit if you pay all the cash directly from the mobile home. Buying a mobile house on the land, that’s even cooler, you can also get the appreciation like you get when you buy other homes. But be aware if you buy a used one then it will be economical otherwise it will be a costly gamble.
One more, smart tip here is to rent a mobile home, a cheap one actually and then save up to buy that land home you've been wishing for. A wise choice then will be to buy an old house in excellent condition, you can easily find pre-owned houses on very affordable prices, find some places away from the city and you are good to go to save more money than you ever thought.
Golden Tip: Get help from the credit repair companies to repair your bad credit and they can also help you buy a home with bad credit without any hurdles.
3. Saving money for a Bigger Down Payment
Most of the times a bad credit isn’t the issue, the issue is the debt-to-income ratio requirements and rules. You have to show the lender that your 43% of potential income is getting out in all of the debt repayments, and then things will go in your favour. How will you be able to get that 43% income outgoing title? By saving money smartly to pay off your debts. Making significant down payments will result in a lot less debt and more opportunities to avoid PMI Private Mortgage Insurance.
4. Borrowing money from family
Perhaps your family will be more forgiving of the occasional late payment, and they will give you a loan because they know you will pay back soon and in full. The bonus here is you won't have to pay mortgages and signs on those strict terms and conditions.
Moreover, if you don't want to take a loan but want a co-signer with a good credit history, find that person in the family, I'm quite sure there will be someone.
5. Improve that Bad Credit title with your name
Find new ways to raise your credit score. And start to save up money and then invest it to earn potential income from various sources, if you do you will not have to get a loan or any other credits. In such financial buying a home will be quite easier.