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Need to find a home but have bad or no credit? All hope is not lost, as there are a number of no credit check homes available for you to take advantage of today. While some of these options have been available in the past, they are now more prevalent in a market with a large number of homes for sale and a small number of buyers with high enough credit scores to qualify for traditional loans.

1. Owner Financed Homes – Also called seller financing, these types of homes are purchased from the owner, who gives you the loan to buy the house. As long as you can demonstrate your ability to pay the loan back with interest, no credit check will be needed. To make this work to your advantage, you should consult a real estate lawyer to analyze the agreement and to read the fine print.
2. Lease-to-Own Homes – In an effort to get more potential buyers interested in a property, some owners will offer the rent-to-own or lease-to-own option for purchasing a house. This essentially means that you will live and pay rent in the home for three or more years while the seller continues to own the property. While some might check, most private home owners will not run a credit check. At the end of the three year period, you can choose to buy the home and a portion of the rent payments you have made will go toward to the purchase price.
3. Loans for No Credit Check Homes – These types of loans usually last a shorter period of time, have a higher interest rate and use the house as collateral if you default on the loan. However, if you make the payments on time every time, it will improve your credit score in the long run. Just check to make sure you understand all of the stipulations of your contract. You should also attempt to receive a traditional loan to determine if you really need to go for a loan with such a high interest rate.
4. FHA — The Federal Housing Administration is a government program designed to help certain individuals purchase homes when they might not otherwise be able to by providing a low cost loan with either a small down payment or none at all. Not everyone qualifies, but talk to a mortgage broker to see if you and the property you are considering fit within the program’s parameters.

Article Source: sooperarticles.com/real-estate-articles/buying-home-articles/finally-no-credit-check-homes-available-buyers-626727.html

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Allison Edrington is a freelance writer based out of Eureka, Calif.

Author: Allison Edrington