Rent To Own - Home Ownership With No Credit Or Bad Credit

Home ownership with no or bad credit may seem like a distant dream to you. You would think how would you ever be able to own a home with no or bad credit? You think the only solution to get home ownership with no or bad credit maybe to wait until your credit scores improve or you have saved enough money for a substantial down payment.

Good News!

However, there is some good news! Home ownership with no or bad credit is also a possibility! 100% financing is no longer only for those with perfect credit. In fact there are plans which are specially designed for those with bad credit. These are known as bad credit loans.

Few Key Requirements

This means that even if you have bad credit, you can still purchase a home. You may not have to pay a single penny for the down payment! Imagine, you can buy a home within a month, where you thought you may have to work for a long time for credit repair! There are a few requirements however for a 100% bad credit mortgage.

1. You must have a minimum credit score of 580.
2. To get home ownership with no or bad credit you must not have more than one late rent or mortgage payment in the last 12 months.
3. You must have sufficient income. This income must be enough to easily pay your monthly payment credits and mortgage. Your monthly debt must not be more than 45 to 50 percent of your total monthly household income.

If you meet the above requirements, home ownership with no or bad credit is no longer a distant dream to you!

A Few Solutions

There are a few things you can do to get home ownership with no or bad credit.

1. Keep it in your family: You can ask a relative who has a good credit history to buy the home on your behalf. This person will get a good interest rate. This will make your monthly payments mortgage payments more affordable. Once your relative has closed on the house, you need to take over the mortgage payments, the insurance and the taxes. This will get you tax benefits.

2. Rent to own: This is a great option if you do not have enough to buy a home and you want to get home ownership with no or bad credit. In this, you pay the landlord a little more over and above your monthly mortgage payments. With your bad credit history, this is better, cheaper and more effective than a loan.

3. Get the seller to finance: Since you have a bad credit history, you can get the seller to finance your home purchase. This way you can bypass the conventional loan if you have a motivated seller.

Hence, for those of you think your dream of owning a home is over it is not! You too can get home ownership with no or bad credit!