How to buy a house when you have the worst credit ever?

How can you buy a house or rent to own a home with the worst credit, no pay stubs or proof of income except a letter from the job maybe. But can afford to make the payments!

become a stripper on the side to make extra money

good luck you will need it

You don't. You spend the next 5 years saving a down payments, repaying your debts and rebuilding your credibility. Also you look up 'consequences' in the dictionary and read the definition very, very carefully.

IF you're able to get a loan for a house, it will have a ridiculously high interest rate. Might be a better idea to wait a few years and build some credit and work history before trying to buy.

its going to be very hard.

dont go threw an agency... go to craigslist.com and find someone who is renting there place personally, they dont check credit. Just be sure to pay on time so you dont get kicked out.

You just keep renting until you save enough money and straighten out your credit over time, then you will be in a position to own a home, manage a mortgage, pay to keep up a house, etc. Sometimes it's just better to rent for a few years. When we get in a hurry to buy and get in debt, it doesn't usually end well. Patience and perseverance. Stay out of debt, and save up for at least a 20% down payment. At that point, you will be able to get a good quality loan.

hook up with someone with good credit lolz

hmmm... if you have a very large down payment, them will really help convince the banks that you are serious about buying a home and wont walk out on them. Or you will have to find a house where the seller is willing to finance

1. Pay off all bills on time, in full, every time.

2. SAVE for the down payment. (Yours will no doubt be HUGE, so start putting it away)

3. Be prepared to take on a high interest rate. Bad credit, high risk, you see?

If you are lucky, you'll find a lender, but it will be at a high cost to you, and probably not until you can provide them a significant down payment to assure against defaulting.
Good luck!!!

In MI where I live, people are desperate to sell excess houses. But if you have no down payment, then what? Banks don't want to lend money on cheaper houses. A house can be literally 'destroyed' in a short time. An abusive renter threatened me with that. She didn't do anything more than throw a rock through my front window. I think she didn't do anything worse, because I always treated her respectfully. I had to evict them because they just wouldn't pay me any rent.

Now you can buy houses in MI with no money down. Everyone knows that rent is higher than house payments, because taxes and repairs make it hard to make a profit. I am making just enough profit to stay in business. So far.

But I warn you seriously--have one of those free lawyers look at any document you sign up to for 0 money down, and lease to own.

Here's the problem with lease to own. So often in MI, the landlord loses the house he is making payments on. Landlording is a business and so many landlords lose their shirts in it. And then their lease or rent to own renters lose their shirts.

So you must make sure that a portion of the rent you pay goes to make the landlord's mortgage payment. Otherwise, he may simply take all your rent, not pay his mortgage payment, and after 6 months he disappears as the bank takes back their house.

Horrible to experience. I hope it doesn't happen to you.

Now what about your bad credit. Again there are some houses that advertise, 'bad credit OK'. Just beware of all that I have warned you about above. See your local free lawyer or someone who can read fine print.

There are ways to get your credit improved. See your local social services or other office.

One thing: I once got a house with NO credit. The lender could see that I made enough money from my job. (your payment must be less than 30 to 25 % of your income) The lender knew I wouldn't run away with the house. He took a chance on me and it worked.

One more BIG thing: even though house payments are considerably less than rents, house prices are still threatening to go down. It might not be a good time to buy a house. Choose your neighborhood carefully. You hope for appreciation, but in general, we have suffered from the bursting of a housing bubble. So prices are falling.

It may be 2010 before house prices stop falling. Then we can hope for appreciation which will make home ownership worth it again.

I am the first of the baby boomers and I have just retired. I don't want my big 2 story house. I am so typical it makes me sick. We boomers are finding our knees are giving out and we don't like stairs. So two story houses don't look good to us. The huge quantity of big houses that have been over-built over the last decades are going to go up for sale! You can afford to bide your time. Time is on your side. Why not start a savings program for yourself so that you have a serious downpayment (20%) WHEN the time comes and it pays to own rather than rent?

Not easily. If you have no income (that you can prove) how can you afford payments? That's what you need to prove to the bank. Unverified Income loans do happen, I have one. I had to put 20% down.
Depending on your county, you may have some first time buyer programs available or even government grants that typically focus on the "Under privileged". Your best bet may be "rent to own" or having a landlord that will give you a "Rent credit" after a few years where a portion of your rent becomes your down payment to buy the home.
If you still have no luck, look for a private lender. These are people that typically invest in real estate for rental properties or a larger return on their investment. The bad news is that they charge around 9% interest. The good news is that you can refinance with a bank after 2 years for about 6%.

www.creditboards.com for info on how to fix your credit. It takes time, but it works.

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