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Can You Buy A Home If You Have No Credit?

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Maybe you have always bought responsibly by saving money and paying for things outright. Perhaps you never really needed a credit card, car loan, or some other form of financing. Even though these things can help you avoid debt, they can also leave you with no credit history, which can make it hard for you to get a loan for a new home. Even though obtaining no-credit financing for a home is harder than getting a loan if you have stellar credit, it is not at all impossible. Here is a look at some of the things you should know about buying a home with no credit. 

There are lease-to-own programs available for people with no credit. 

Lease-to-own programs are created to offer people who have limited or no credit the possibility of buying their own home in spite of that fact. Lease-to-own programs work just like other leasing programs except there will always be the option to buy the home when the lease term is completed. The only downfall to lease-to-own programs for buying a home is that payments can be a little higher and you may have more fees to contend with. 

It is sometimes possible to find a home that an owner will finance. 

If you live in an area where there are quite a few homes for sale, you may want to try checking with the owners of these homes to see if they would offer some form of owner financing or rent-to-own option. Of course, buying a home in this fashion should take careful consideration of any loan terms that are offered to you. You do not want to end up paying a super-high interest rate for a lot of years or making payments that you cannot afford. Likewise, most homeowners who agree to finance a home on their own are going to ask for a substantial down payment up front. 

Special lenders may offer no-credit home mortgage loans. 

Lenders who offer no-credit home loans are a little harder to find, but they do exist; you will just have to do some research to find them because these loan programs are not as widespread as others and may not be available through a lender locally. These loan programs hold the home as collateral just as any other mortgage loan, but you will likely have a higher down payment requirement than you will with a traditional loan. 

For more information, you can check out companies like SWE Homes in your area.