Today, on Limitless TV, we’re diving into the challenge of securing a home loan when your credit isn’t in the best shape. If you’re eager to make that dream home a reality despite a less-than-ideal credit score, here are three strategies to consider.
CREDIT REPAIR: THE LEGAL APPROACH
The less exciting but effective option is credit repair. Reputable companies, albeit with a cost ranging from $1,000 to $2,000, can go to the credit bureau and challenge items that led to your bad credit. Their legal teams know how to craft letters that often force the credit bureaus to drop or amend negative entries. While it takes a few months, it’s a legitimate way to improve your credit standing.
HAVE SOMEONE SECURE THE LOAN: LEVERAGE TRUST
If you’re not keen on shelling out cash for credit repair, consider having someone you trust secure the loan for the property. This isn’t about co-signing; it’s finding someone willing to take on the loan and let you use the house. This fast-track option relies on trust and personal connections, providing a quicker route to your homeownership goal.
LEASE OPTION: THE FLEXIBLE PATH TO HOMEOWNERSHIP
Now, onto my favorite option: the lease option. This unconventional approach involves finding homeowners or investors willing to offer a lease-to-own or seller financing arrangement. Here’s how it works:
- Find a house with equity.
- Negotiate to credit a portion of your monthly payments toward the house’s purchase price.
- Use this time to repair your credit or resolve issues.
- Enjoy the full rights of homeownership while buying time to improve your credit standing.
Check out my book (linked below) for a detailed guide on lease options. Negotiate the terms, set the price upfront, and ensure that your good stewardship of the property is credited toward the eventual purchase.
Consider adding yourself to the title for stronger positioning. This allows you to refinance the home within a few years, making it easier to qualify for a loan.
Remember, if you’re venturing into lease options, seek contract training. Attend the Limitless Wealth Intensive for comprehensive training, contracts, and everything you need to navigate the process successfully.
Whether you have good or bad credit, these strategies offer alternative paths to homeownership. Click the link below to explore your options and request information about our upcoming events. Your dream home might be closer than you think!