Website design By BotEap.comKnowing how to buy a house with bad credit has become a priority for many people. There are several options to help you buy your dream home, including rent-to-own, seller-return financing, first-time homebuyer programs, and government grants.

Website design By BotEap.comThe Internet is a good source to learn how to buy a house in today’s market. It’s best to stick to government websites, such as the Department of Housing and Urban Development, the Veterans Administration, and the Federal Housing Administration, or well-known real estate agents, such as Century 21 and Prudential real estate.

Website design By BotEap.comBe careful when real estate websites are solely focused on selling a course. Unless you want to learn how to buy a home as a real estate investor, there is no need to purchase training courses at this time. Everything you need to get started can be found online at no charge.

Website design By BotEap.comOne option to buy a home is through lease-purchase contracts. The property owner and the buyer agree on the most suitable terms for them, but they must comply with usury and real estate laws. Leasing to own involves the buyer providing a down payment and the seller contributing a portion of the rent toward the purchase of the home.

Website design By BotEap.comRent-to-own contracts last between one and five years. Buyers can establish or rebuild credit by making lease payments on time. When the lease expires, buyers can apply for a traditional home loan.

Website design By BotEap.comLease-purchase of real estate should be carefully considered. Both parties must be willing to submit to a credit and background check. Buyers should beware of potential foreclosure scams or mortgage fraud. Remember, if it sounds too good to be true, it probably is. It is strongly recommended that you retain the services of a real estate attorney to draft or review rent-to-own agreements.

Website design By BotEap.comAnother home buying option for people with bad credit is seller-return financing. Sellers act as mortgage lenders and finance all or part of the purchase price. Most sellers have between 5 and 30 percent and buyers finance the balance through a commercial or hard money lender.

Website design By BotEap.comSeller Transfer Mortgages last between two and five years. Buyers have two mortgages; one for the lender and one for the seller. It is best to hire an attorney to draft the seller’s deeds of trust and file the real estate transfer documents.

Website design By BotEap.comBuyers with bad credit may qualify for Home Path Mortgage; a discount program for selling foreclosed homes owned by Fannie Mae bank. Bank-owned homes include properties that did not sell at auction and are returned to the lender.

Website design By BotEap.comAlso known as real estate or REO properties, bank real estate commands a higher price than foreclosed homes. However, REO homes are sold with a clean title; eliminating the headaches of link removal and lawsuits.

Website design By BotEap.comBuyers must be able to provide a minimum 3 percent down payment to purchase Home Path Fannie Mae foreclosed homes. Qualified applicants may apply for Neighborhood Stabilization Program grants through the Department of Housing and Urban Development. NSP grants are awarded to people buying a home in areas that have been devastated by foreclosure.

Website design By BotEap.comThese are just a few options on how to buy a house with bad credit. Informed buyers can save thousands of dollars on already discounted real estate, gain instant equity and improve their credit as they work to purchase a home. If you’re thinking about buying a home, now is the time to learn about the different types of real estate and financing options available.