You Can Still Buy a House with Bad Credit Through Lease Options

It is the goal of all Americans to own their own home.

Unfortunately, along the way, some of us get sidetracked. It is a tough world out there especially as it relates to credit and home buying. And frankly, many Americans get their dreams derailed, many times through no fault of their own or through circumstances that were beyond their control.

When a person ends up in credit trouble, or when things like job loss, medical conditions, divorce or bankruptcy become a part of a persons reality, hope for home ownership gets bleak and many people give up on their dreams and settle for a lifetime of renting.

This is where Lease Options (when done properly) can be a perfect solution to the challenges at hand.

If you are still renting, this list might describe some or all of your current circumstance?

You probably dont have much money saved for a down-payment

You have too many credit cards or credit accounts open

You have delinquent accounts and collection agents or attorneys asking you for payments

You may have past legal problems such as judgments, divorce, bankruptcy, or foreclosure

You have been told to wait for a year or more before being able to buy a home

You probably feel frustrated as you try to find the perfect answer to your home buying needs.

You have already been turned down by a lender (or couldnt get one to take you seriously if you tried)

And you are most likely, TIRED OF RENTING and TIRED OF BEING REJECTED. Probably the most damaging effects that poor credit will have on a person is that you feel like youve run out of options.

The truth of the matter is that if you want your own home and you have poor credit, you only have two real options. You must either:

1.Wait for your credit to get better or your circumstance to change and then at some point in the distant future you can go out and find a home to own. This could be anywhere from a 1-5 years depending on how bad off your credit actually is. This is the wait and keep renting method. (I usually dont recommend this)

OR

2.You must find an investor/owner who is willing to overlook your problems and give you a chance to prove yourself through some means of owner financing. The safest and best way to do this is with a Lease-Option through a trusted and proven investor/owner who has a win-win scenario for making this happen. (This option is highly recommended if you do it properly)

Lets Explore a few specific reasons why a Lease-option is such a good idea.

If you enter into a lease-option with an owner/investor, you will get to live in the home as though you already owned it. This means that you instantly get to start enjoying the lifestyle benefits of ownership.

What literally happens is you will agree on price and terms of your purchase of the home immediately. Then, since you cant get your own home loan quite yet, the owner will agree to rent/lease the home to you for a period of time (6 months-2 years) and As Soon As you can get a home loan within that time frame, you will exercise your option or your purchase agreement and cash out the owner/investor.

So basically, you get to move into and virtually buy a home, even before you can get your own loan because of the flexibility of the owner.

Some benefits are:

No landlord dictating to you what color you may or may not paint your home or living room wall.

No waiting on a landlord to keep your house in working order. You take care of the home as though you owned it already.

You can make maintenance and home improvements to your house or yard helping you to enjoy the home as your own.

Much of the market appreciation and equity growth on the home can actually become your equity when you buy the home from the investor.

You can do these lease-options with ZERO credit. Or even with BAD credit. AND - Perhaps one of the BIGGEST benefits...

Lock in tomorrows purchase price today.

And this is huge because as you know, real estate appreciates over time! Your home will be worth more next year than it is worth today, and when you can lock in a specific price today, and pay that price tomorrow YOU can come out a big winner.

Just remember, when you get into a lease-option, to spend as little as possible in down payment money and do what ever it takes to get your credit turned around as fast as you can, which is what you should want anyways.

Most importantly, dont look past the ultimate goal. Buying a home through a lease option is your tool to get into the home of your choice, even before your credit or down payment challenges would have otherwise allowed you to.

Stop settling for a standard rental and go find the home of your dreams.

Dan Ostler is the owner of http://www.LeaseOptionHomeBuying.com. Dan is an author, speaker, business owner, investor, and one of the nations leading Lease Option Consultants. He has been offering housing solutions and consulting advice to families with credit issues in all parts of the country for the past 8 years, and welcomes all visitors to his website for tons of **FREE** Information.

Bad Credit Hurting You? Tips On Finding the Perfect Mortgage

It's important to choose the best mortgage company for your needs. This is especially true if you have a bad credit score and need a mortgage loan or to refinance.

The interest rate is by far the most important factor to be considered so finding the a mortgage with the solid company and a great interest rate is your top priority. It's also good advice to make sure there are no hidden fees associated with the the loan package you end up choosing, especially if they're provided a low interest rate and you have the stigma of bad credit and a low score.

It's also important to research the quality of service the mortgage company has offered in the past. Choosing a company that offers low interest rates and horrible service won't benefit you in the long run.

However if you are lucky enough to find a loan company that offers exceptional service with a slightly higher interest rate, you might want to go with them and build a relationship that you can carry into the future.

Many leading institutions not only offer favorable interest rates, but can also provide expert advice. Another option to consider for a bad credit loan is the size of the mortgage company or bank since they may have better coverage through many branches. While they might charge a higher interest rate than other mortgage specialist, they often offer introductory mortgage deals that are very favorable.

However, look across the entire financial landscape and search for mortgage companies who specialize in bad credit loans or provide mortgages to people in unusual or special circumstances. You may want to consider a consumer debt consolidation loan to reduce some debt and improve the credit score.

For example: when people are not offered a mortgage by a credit union, nationwide bank or standard regular lending institution because of bad credit, lower credit score or previous bankruptcy history. If you're unable to find a bad mortgage company company locally to help you, search the web for the many online loan companies available. Often they can offer lower rates because of lower overhead.

Finding a great interest rate on a loan is much easier with a higher credit rating. For many a loan for consumer debt consolidation is the best first option. Find out what loan and debt consolidation options are at http://www.everlife.com/consolidating-debt.php .