How to Buy a Home With Poor Credit

Video Transcript

"Buying a home with poor credit is still a possibility in todays market. I'm Richard Blake and I'm here to tell you how to buy a home with poor credit. Cash talks. Basically the more cash that you have the worse your credit score can be. Items such as your income is going to be very important. If you don't have these items if you can't, if you don't have substantial cash saved up, or a family member or friend that may loan you the money that sort of thing really the best option, maybe the only option for you is going to be the lease option, which is an offer that you're going to make to the seller based upon renting or leasing the property from them rather than outright purchasing it. What you're doing is you're purchasing option to that will allow you to purchase the property at a later date. So for example if you have one hundred thousand dollar property and you make the offer to the seller that you would like to do a lease option, what you're going to do is pay a fee for that option, or purchase the option, so say for a thousand dollars. The seller will sell you that option to purchase the property at a later period of time. Generally it's going to be anywhere from twelve months to thirty-six months. So on a hundred thousand dollar property you say I'm going to give you a thousand dollars to purchase this property thirty six months from now at a purchase price of a hundred thousand dollars. So you're locking in that price over a three year period of time, and then during that three year period of time you're actually renting the house from them or paying their mortgage for them as you go along. What this does is it allows you to build your credit during that three year period of time, but it gives you the advantage of locking in at todays prices so if prices do escalate over the next three years your still getting a really good deal based on shopping today. The best thing I can do is recommend that you speak to your local mortgage broker. They can explain to you a little more thoroughly how this works, but it really is a great option for those of you who have a poor credit score. I'm Richard Blake have a great day."