The Best Alternatives For Bad Credit Mortgages

by | Jan 17, 2013 | Loans

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With the economy the way it is and has been for the past few years, many people are finding it hard to get mortgages. Many of you have decided that since you cannot qualify for a mortgage you will just rent the rest of your life. This is a grand idea but if you do decide to rent you may find that rent payments are quite a bit higher than mortgage payments. If you do suffer from bad credit due to bad choices in your past or due to a divorce in your past, there are alternatives for you concerning mortgages.

If you cannot get approved for a standard mortgage, do not let that stop you. There are several alternatives out there for those of you who are having a hard time. One of the ways you can get around a standard mortgage is by finding a landlord who is willing to do a lease to purchase with you. You should get an attorney if you go this route however because even though it may be a simple concept there are a lot of legal potholes in which you may fall.

Another alternative for bad credit mortgages is private lenders. Private lenders may be willing to work with you if you have the ability to show them how you have been paying your bills on time for a while and are working your way out of your poor credit. The private lender will probably be willing to offer you a loan because they realize that you will have to pay them a higher interest rate than someone with good credit will and they will make more money in the long run this way.

Another possibility for someone with bad credit to get a loan is if you find someone that is willing to take back the mortgage or in other words they would act as the lender for you. If someone owns a house and has no payments to make, they may be willing to owner finance for you. This way you will pay your payments directly to the homeowner and after you finish paying for the home over a period of years, the home will officially become yours. This is basically the same concept as a standard mortgage but the owner is the bank instead of the bank acting as the owner.

There are also organizations that work with low income bad credit individuals such as Habitat for Humanity. If you are willing to do a little work and get a little dirty, you may find yourself in a new home easier than you think!

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