Five Steps You Can Take To Buy A Home With No Credit History

You don't necessarily have to have an extensive history of good credit to be approved for a mortgage loan. It is possible to find mortgage financing with little or no credit history (no credit financing), but it's going to make your quest for homeownership a little more challenging.

The following are five things you might want to do if you'd like to buy a home as soon as possible but you don't have a credit history:

Start saving up money

You may be able to find a mortgage loan with no credit, but you'll probably need to supply a fairly large down payment. As such, the first step to buying a home for you should be to start saving up money. 

The more money you put down, the less risk the bank has to take on in offering you a mortgage loan, and they will be more likely to work with you despite your lack of a credit history. 

Begin building up a credit history

Even if you have no credit, it should be fairly easy to be approved for a credit card. If you can't find a general credit card company to provide you with a line of credit, try taking out a store charge card. 

When it comes to building a credit history, you have to start somewhere. Even being able to show lenders just a few months of payments made on time can help you to get a mortgage loan with good terms. 

Maximize your income

Your income is probably going to be considered as important as your credit history when you're applying for a mortgage loan or any other type of loan. If your income is high, lenders will figure that you shouldn't have any problems making payments.

Look for ways to increase your income. Perhaps you can work overtime or take a side job. 

Look into homes that offer "rent to own" or "lease to own" deals

A "rent to own" deal could be your best bet for owning a home. You may be able to find a landlord who will take a down payment from you on a home and then collect rent payments over time until the value of the home has been paid off. Then, the landlord would transfer the deed of the house to you and you would own the home outright. 

Look into loans offered through government programs

The government tries to help consumers to achieve home ownership to improve the finances of its citizens. Look into FHA loans to see if you qualify. 

About Me

Real Estate Crash Course: The Fundamentals

After inheriting my house from a deceased loved one, I had no idea what it was like to go through the home sales and purchase process. When a medical emergency necessitated selling and moving somewhere else, I was in over my head. Luckily, I worked with a great real estate agent who helped me understand the entire process, from listing to inspection and closing. I created this site to share my experiences and knowledge. Whether you're buying or selling a family home like I did, I hope that it helps you as you venture into your first real estate transaction.


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