Questions
Question: A friend of mine told me to get the following book:
No Credit Required.
I just got it and started reading it. I have some questions.
I am a 33 year old legally blind individual on Social Security/SSI. I am married with a wife and 3 kids. Our current rent is $625.00 a month and my wife and I would like to get a home of our own. How can this be done with no money down or whatnot? I recently got my credit report and it says I have no credit at all. Owning my own home would be a dream come true. Any information or intelligent conversation would be appreciated.
Answer: How is the book? When purchasing a home, having no credit is not so much of a liability, provided one has down payment money. Besides, you do have credit information, just not the type reported to the Credit Bureau. Lenders will take a look at your rent payment history, for example. Getting a ‘no money down’ type house will require more legwork on your part. You must seek out owners of properties willing to carry all or part of the note on a house. Frequently, owners are willing to do this, because they either have a house that is difficult to sell, or the price will be jacked up. Generally, if you can come up with about $5000.00, you can purchase a house. It depends upon your household income. A call to your local Realtor is a good first step. They can help you know the price range of a home for which you could qualify. The information is free, it’s always worth asking. When buying a ‘no money down’ house, or going through any type of owner financing, there is a trade-off. You will be responsible for knowing the shape the house is in. Everything from plumbing to electrical to termites is usually YOUR responsibility to investigate. Going through a bank offers the buyer more protection, because the bank will require certain professional inspections. They will make a determination that the house is in good shape, that the selling price is fair and reasonable, etc. I believe I would try that route first. Placing an ad in the real estate section of your local paper might be beneficial. Tell everybody you know what your desire is. Word of mouth is a superb route when searching for owner financing. Your dream will come true, if you have the determination to see it through. I think that you do.
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