Poor Credit Cash
Posted by admin on October 26th, 2008 at 12:00am
Question:
How do you purchase a home with poor credit cash, no cash and zero income?
Answers:
Search for a rent-to-own scenario. If you locate a house you would like to rent, ask if the building manager would want to sell it to you. Go into a Land Contract with him. Pay him with a check for one year on schedule before the due date.
Meanwhile, open up a few secured credit cards through Wells Fargo and Bank of America and maintain them, keeping them current. As a matter of fact, only use as much funds as you are able to pay off by the due date.
After one year you can obtain a mortgage to buy the home off of him. If you rebuilt your credit and were able to get a deal on the house, you might have the ability to borrow extra money from your financial institution to pay for your closing costs and perhaps a little cash-out.
The other way is to purchase a home from a close relative or friend for a discount. You may use the equity in the home to your benefit. Depends what your poor credit cash is like.
These happen to be the only two ways you are able to legally buy a home with no money out of your wallet.
Most critically, do research on mortgages.
You will need to work with your local mortgage broker. You can talk to one right away so you can begin taking actions to rebuilding your credit rating. You may get issues such as liens that will have to be discussed.
I agree with respect to the No Doc loan (which is basically No Income, No Job and no Assets). However, such a loan is dependent solely on your credit so if you have poor credit cash you may not even be approved for the No Doc, and if you do get it, the interest rate is actually going to be quite high. I would suggest that you get an occupation and save some money before you purchase. Or at the very minimum try to rebuild your credit.