Mortgage companies have helped many people buy a home with bad credit in recent years. However, many programs that were used in the past are no longer available or have tightened their requirements. Compared to mortgages for people with good credit, those for people who want to buy a home with bad credit require:

- Larger down payments
- Higher interest rates
- Sometimes (often?) very high up front fees (points)

This has always been the case to a more or lesser degree. The big change recently is that with the rate of foreclosures increasing, lenders are classifying more prospective home owners as "bad risks" and offering them only sub-prime mortgage programs. And some lenders that specialize in mortgages for people who wanted to buy a home with bad credit have curtailed their operations or gone out of business all together.

So what are your options? Can you still buy a home? Read the rest of this entry

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There is no doubt about it. Home inspections are a must!

Even if you are able to talk a seller into your creative financing deal. Even if you do get in without having to qualify for a mortgage so there is no lender required a home inspection. You still need to inspect it.

A professional home inspection is always recommended and is about the best investment you can make when buying a new home. Have you ever seen "The Money Pit" with Tom Hanks? If not, go rent it at the video store and then seriously consider hiring a home inspector.

You still need to make an initial inspection to be certain you want the home. The seller may be selling because expensive repairs are needed. At this stage, you just don't know. So you need to find out. Read the rest of this entry

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Don't overlook homes for rent when you are looking for a home to buy with no qualifying. Investors sell their rentals from time to time for various reasons.

They may want to trade up to more expensive homes. They may change their focus and want to concentrate on multi-family units rather than single family houses. They may be ready for retirement and want to cash out. Or they may be just sick and tired of dealing with renters.

For these and many other reasons, a home for rent may be your open door to a home without qualifying for a mortgage. And investors, as a rule, are more open to creative deals like lease options.

So how do you find the investors who are willing to deal? Read the rest of this entry

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The news is full of real estate doom and gloom these days. Foreclosures are up! Fewer families can afford to buy their dream home! Lenders are encouraged to get tougher with loan applicants. Mortgage company shareholders demand reform! The Federal Reserve issues cautionary warnings on the economy because of the housing market!I could go on and on. But there is something you need to keep in mind as you hunt for your home. Actually two things.

First. Scaring people is what the press is all about. If they couldn't find something to warn you about and play on your insecurity, they would have to make it up or people would turn off the TV and stop buying papers! Don't believe it? Some years ago Turner Broadcasting had a program on Sundays called (as I recall) "Good News". They only covered stories of uplifting events from all over the world. You can't find the program on anyones schedule today. No one was interested in hearing "good news".

The second thing you need to keep in mind is that even if an event is bad for someone, it may just mean great news for you! Read the rest of this entry

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