Buying a Home With Bad Credit

If you've found yourself in a situation where you've been late on your bills or credit card payments, you've probably discovered that your credit rating has been hurt as well. One of the challenges of having poor credit is that it is often difficult for you to get loans and future financing, especially when it comes to a new home loan. With the economy the way it is, many people have found themselves in this situation, and think that it's impossible to buy a home. Fortunately, there are ways for you to purchase a home that don't involve directly taking a mortgage or dealing with a bank.

One of the ways that you can become a homeowner even though you may have be credit is through a 'lease to own'. These work a bit differently than a standard mortgage, but often have several advantages versus purchasing a home outright, such as the ability to "try before you buy". In many regards, they serve as a way for you to avoid falling into the traps which so many homeowners have fallen in the last several years.

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With a lease to own option, you put down an upfront payment called "option consideration", and sign a lease. The down payment secures your right to purchase the home at the end of your lease. Also, a portion of each monthly payment usually applies towards your purchase as well. If you don't have much money saved up for a down payment, you can sometimes work out an arrangement to trade "work for equity" or even items of value such as vehicles or other objects of value in lieu of a down payment. Benefits such as these make lease to own a good deal for those with bad credit.

While purchasing a home will never be as easy for someone with bad credit as it will be for those with excellent scores, there are ways that you can get around the obstacles of buying a home. Finding a good lease to own program may be the best way for you to get into a new house and go from renting to owning.

Washington Home Solutions offers prospective home owners the ability to lease to own their dream home, even with bad credit.

Buying a Home With Bad Credit