Hello, I want to buy a condo or a house with 2 bedrooms, but I don't have any credit at all. I pull around 4k a month and have about 15k saved up. I was wondering if there is any way I can buy a house or a condo without building credit first. Please help me and thank you very much for your help.
2007-06-30 20:22:58 · 5 answers · asked by ewhs 1 in Business & Finance ➔ Renting & Real Estate
Of course its possible, but you unfortunately will have to pay more due to interest charges. No credit will hurt you on interest because lenders have no baseline to trust you on.
However, there are some alternatives that I would recommend looking into:
Join a credit union
They usually have good rates, even for people that have poor credit. The main difference between a large lender and a credit union is that the customers of the credit union "run" it and are generally more forgiving to its members. If you work at a large company, they may have a credit union established that you can join.
Ask a friend or relative to pull a line for you
It would be beneficial for both parties to have agreements signed, however, to protect both you and the private lender. Many relatives (Think: Uncles and Aunts with no kids) have money saved up that isn't going anywhere. Sign a contract with them to give them a good amount of interest back in X amount of years if they let you borrow money.
Once you're able to pay a good sized down payment on a home (rule of thumb is 10%), you should be able to purchase a home with no trouble.
Definitely look into establishing credit though (Read: Now!). Even though you are on the path to purchasing your first home, establishing good credit ASAP will benefit you greatly in the long run, especially if you plan on owning several properties.
Good luck!
2007-06-30 20:33:08 · answer #1 · answered by Some Guy in IT 2 · 1⤊ 0⤋
It depends on how much good credit you have established. If it is just a couple of credit cards with a small limit like $500 or so, that might make a difference, but in a bad way. If you have a lot for a down payment that might help, but I am talking about $5,000+. Renting is not all that bad in the long run. You don't have to pay for repairs, no yard work. You are young, too young to have such a big responsibility like owning a house. You might try going to one of the well-known real estate sites and learn more there. Good luck in your decision.
2016-05-20 00:20:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, you can, and you won't necessarily have to pay a higher rate. You could qualify for a very competitive rate FHA loan. FHA will accept "alternative" credit, meaning anything that can document that you've made on-time payments for the last twelve months--cell phone, utilities, rent-to-own, etc. Find a knowledgeable FHA lender and get pre-qualified.
Good luck!
2007-06-30 21:17:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You will probably need to establish credit first but that doesn't need to take a long time. Apply for a credit card if you can't easily get one apply for a secured card.
2007-06-30 20:30:04 · answer #4 · answered by shipwreck 7 · 0⤊ 0⤋
there are programs that offer financing on no credit borrowers. I would shop around mortgage companies to check out your different options
2007-07-01 00:21:55 · answer #5 · answered by WeLoan.Us 2 · 0⤊ 0⤋