Buying a house in Palm Beach with bad credit is almost an impossible task, you might think. One big disadvantage is you’ll end up paying more than the average buyer. You’re also going to have to jump through a few hoops before you can make some headway.
One way to buy a house with poor credit rating is through hard money lending in Palm Beach. This means that you can borrow a short-term loan against the property you intend to buy. The deed of the house will be charged to the loan until you pay it off. If you have bad credit, consider these tips when buying a home:
The first step you need to take is to find out what your credit score is and fix it. Find out why it’s low and pay off any outstanding loans. You can also work on getting your credit score revised by talking to the lender who rated you after you’ve paid them off.
Apply for federal loans such as the Federal Housing Administration (FHA) loan. This type of loan enables you to get a mortgage at a lower interest rate with a down payment of 3.5% to 10% based on your credit rating. You can also apply for a veteran loan if you served in the army or the U.S. Department of Agriculture (USDA) lending program for house purchases in rural areas.
Rent to Own
Look for a homeowner who’s willing to let you pay for the house on a long-term installment basis as you live in it. Homeowners who are desperate to sell will also be willing to borrow on your behalf and transfer the deed to you once you’re done paying them.
Owning a home isn’t easy. However, the tips above might help you get one if you have a poor credit score. Consider the available options and seek expert advice before determining the right choice for you.