How to Get a Home Loan With A Bad Credit Score

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By Lamonique
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Get a Home Loan With A Bad Credit Score

If you have bad credit and are in need of a home loan, chances are you've already had the door slammed in your face when it comes to financing. Here are some tips and creative ideas to fund your dream home.

Difficulty: Moderate

Instructions

Things You'll Need:

$3,000.00 downpayment
Patience

Step 1

BUILD YOUR NON-TRADITIONAL CREDIT- Pay your current landlord on time. He can be a great reference for you. Pay your utility and water bills on time. Use these non traditional payments as proof that you can be trusted to pay your home loan.
Step 2

BE PREPARED TO SHELL OUT THE CASH- If you have good credit you qualify for all those great "no money down" offers. But since you're reading this article my guess is your credit score isn't where you'd like it to be. Don't kid yourself bad credit means upfront cash. That's ok though. Patience is key here. You can raise cash through monthly savings, your income tax return or creative financing. Which brings me to step number 2.
Step 3

GET CREATIVE- Is cash an issue? How about enrolling in your local college. If you're low income you probably qualify for financial aide. Your student loan money is to be used in part for shelter expenses while attending school, right?
Step 4

BE UNTRADITIONAL- If getting a conventional loan continues to be a problem, seek out homeowners willing to sell their homes on Land Contract terms. This will give you the ability to buy a home without a credit check. Some sellers will allow you to buy their home with a down payment of around $3,000-$5,000 with monthly payments, as long as you agree to improve your credit score within 1-3 years and apply for traditional financing. Others may be willing to continue with monthly payments until the home is paid in full.
Step 5

BE DILIGENT- Register with your local Realtor, specifically seeking sellers who are willing to work on Land Contract Terms. Check home listings online. Craigslist is a great source of Land Contract homes. Approach sellers with signs on the lawn that read: "For Sale By Owner" These sellers may be more willing to sell their home on a land contract or a rent to own basis if you compel them with a large enough down payment.