If you are buying a home and are not sure if you will be able to get financing from a bank at the time you can try a lease option. A lease option will subjects you to rent the home for a set period of time given by the owner. Once the time period is reached you can choose to purchase the home for a preset amount or continue to rent the home or just walk away from the deal all together.
When you do a lease option you will still be required to pay a deposit set by the owner. Once the lease has expired if you decide to purchase the home you will be refunded your deposit; however, if you choose to not purchase the property then the renter gets to keep the deposit. The benefit of this deal is once you agree on the price of the house the owner cannot raise the price of the house. If you still want to work on your credit before you purchase your home this gives you a chance to raise your credit score
If you are buying a home for sale by owner, you can always ask the seller if they will be willing to do owner financing. You may want to check the local laws for your area becuase this may be illegal in some states. Owner financing is also very risky for the owner as well.But if you get the green line this is an incredible way to finance a home if your credit isn’t up to where it should be otherwise through a financial institution.