how do you buy a house with no down payment and no credit?

Answer 1

Believe it or not this has a chance of getting done. Depending on your state I could probably do this loan for you just send me a quick email on my profile.

Here is a rundown of how this is possible. No credit reporting is different than no credit. If you are the only person on the loan then FHA, and a select few other programs will allow you to build a credit profile. This means you have to show payment history on something. For example 12 months worth of statements on your cell phone. This normally doesn't show on credit, so we can build it. Also anything else that has been in your name.

If we can build 3 tradelines then you have a shot, even without a credit score. No credit score, isn't bad credit necessarily, it is no reported credit at all. If you have reported derogatory credit then you have a problem.

Answer 2

Although you have to pursue the option with each property that you're interested in, a 25% vendor take back mortgage will do the trick. If the person selling the house will hold the 25%, your mortgage broker will be able to find you the 75%. The 75% mortgage goes in first position, meaning should you default on the mortgage, they are fairly safe at getting their money back out, hence the risk is not there for them. You will need to verify that you don't owe any taxes to Revenue Canada, but you can work with stated income. Ask the vendor to hold the 25% for up to 12 months, and that should give you some time to build or re-establish some credit. That and whatever the house re-appraises at after 12 months will be considered equity that you have in the home.

You will still need closing costs and possibly lenders fees should your broker have to go to private money.

If you're working with a realtor, make sure they ask their client. They have a tendency to just say, "I don't think they're in a position to do that". You'd be suprised how many vendors will entertain the idea when it's posed to them. We had our choice of 4 homes that we liked and all were willing to play ball.

This does work, and good luck! Any more info I can provide, feel free to ask.

Answer 3

Private Lender for the mortgage or Cash.

One example of an exception to that may be a Professional Athlete - someone who makes a boat load of money, but has no credit history because they pay cash for everything, may get a traditional loan under those circumstances. A typical person, such as you and me, may NOT.

Good luck on your search!

Answer 4

You need to build some credit to get the best interest rates. I would also suggest that you try to start saving and build up a down payment. Then try Country Wide loans or e-loans online.

Answer 5

Haven't you been following the news about the collapse of the sub-prime lending market and how people with no money and bad credit can NOT get a loan to buy a house these days.

There is NO MONEY out there for people with BAD CREDIT... hell... there is no money out there right now for people with GOOD credit.

Answer 6

you do a rent-to-own deal with a property flipper.

just be aware that the price you agree to pay is above market and that if you fall even 40 days behind, you'll be out on the street -- he'll start eviction for non-payment of rent as soon as you're 30 days behind.

Answer 7

Find a seller that will do a owner carry, a hard money lender or pay cash.

If you have utility bills, you have a credit score.

Answer 8

Turn the clock back 3 years or find a hard money lender who will lend you money after they have taken your first born child and held your dog hostage.