Low Credit Mortgage

Having a low credit score can make it harder but not impossible for a person to get a mortgage. Getting a mortgage with a low credit score is possible if a person is willing to shop around and insist on getting the best deal possible.

A low credit score merely indicates that a person has had a record of not paying bills or paying off loans. It doesn’t indicate how much money a person has or say anything about their employment situation.

It is possible for a person for a person with a low credit score to get a mortgage, if the person can prove that they have the income to make the mortgage payments.

Put up a down payment

The best strategy for getting a mortgage with a low credit score is to make a down payment. A person who is willing to make a large down payment should have no problem getting a mortgage.

Those with low credit should try and get a large down payment together before seeking a mortgage. Mortgage companies may be willing to reduce interest rates and give better terms to those willing to make a down payment. Buyers will be more willing to work with those who can make a larger down payment.

Find a seller willing to carry a mortgage

A good way to get a good deal on a mortgage is to find a seller who is willing to carry the mortgage. This means that the seller is willing to guarantee the mortgage if you default on it.  A mortgager is likely to overlook your low credit score if the seller is willing to assume the risk.

One way to find a seller who is willing to carry a mortgage is to look for houses that are not selling. A seller who wants to unload a house that isn’t selling might be willing to carry a mortgage to get rid of the house.

Rent to own

Another opportunity that many homebuyers who have low credit scores overlook is rent to own. In a rent to own property the landlord agrees to sell the person the home if they meet a certain number of rent payments.

A big advantage to rent to own deals is that a person doesn’t have to deal with a mortgage companies. Another advantage is that many rent to own landlords are willing to work with people with low credit scores. One good thing about rent to own properties is that rent to own deals are easier to get out of than mortgages.

A person should be able to locate rent to own properties by checking the Want Ads in local newspapers and Craig’s List.

Low credit mortgage

A person with low credit should be able to get a mortgage; however, they should be willing to pay higher interest rates and deal with stricter terms on that mortgage.