You do not have to worry about missing out on your dream home just because you have got bad credit. There is a light at the end of the tunnel as there are now more options available to people with bad credit than ever before. First it would be a good idea to find out your credit score if you didn’t already know it. You could talk to a credit specialist and find out how you could improve your credit. This could send good signals to the mortgage companies that you are trying to sort out your credit.
The next step to take would be to do a little research and find some mortgage companies that specialize in people with credit problems. You could find these specialists by checking out your local real estate papers or your free magazines. Normally you would see the advertisement that says that they can help anybody to buy a home regardless of their credit history.
You may also benefit from the “rent a home with an option of buying” program. The landlord or homeowner would make an agreement with you to leave a down payment of between $3,000 and $8,000, obviously the higher deposit then the less you would have to pay per month. By paying consistently on time each month they would then take a percentage of your rent to pay towards the purchase of your home. Then after about 24 months the landlord would in effect turn your lease into an actual mortgage. This does not only make you a homeowner but it can also improve your credit rating too. You must make sure that you get all the transactions down in writing. By hiring a lawyer to inspect the terms and conditions of the rent with an option to buy program you can be sure that everything is above board.
If this option does not appeal to you then you do have other options available to you. There is a chance of buying foreclosed homes at the yearly tax sales. Most states allow you to do this even if you do not have a good credit history. The tax office is only concerned about the payment, which could be by cashier’s check or by money order but they have to be for the full amount. They are not overly concerned about any monthly payments that you make. If they were to keep checks on the entire buyer’s credit they would probably never sell anything.