Many homes that you are able to buy with no credit and no qualifying will require some remodeling. Some areas may be beginning to look dated or in need of repair but money money is often an issue that needs to be addressed.

The vast majority of people find the only way they can afford this is to arrange a home improvement loan. If you want a first rate home improvement job carried out with a guarantee then you will need to use professional tradesmen who should also speed the work up a great deal. And professionals cost money.

Home improvement loans usually have the choice of a secured loan on the property itself or an unsecured loan where the home does not need to be used as equity. A loan that does not require equity allows new homeowners to apply even if they just bought their home. Fortunately for the homeowner, a non-equity based financing arrangement is available with a fifteen year repayment term if required.

The only condition made on no equity finance is that the owners must have a joint income which is lower than the county limit where the property is but reaches the limit specified by the lender. Certain facts are researched by the lenders; like the type of property and reasons for the loan but essentially, this type of loan is easy to arrange with only a small amount of documentation to complete.

Not everyone wants a home improvement loan that is secured on the property but when the mortgage is small and the house value is high, this might be a good option. This type of loan is much quicker to organize and because the house is being used to secure the loan, it benefits from better terms and lower interest rates.

This is not an open ended finance agreement and a valuation of your property will be required for a secured loan to be arranged. This calculation is worked out using how much your home is worth, how much is owed, and of course if there are other loans or debts, as these will be included in the calculation.

The next stage is to factor in all this information before a final figure the lender is prepared to agree upon is put before the homeowner. Normally a lender will lend to the upper limit of the house valuation but few lenders will above that anymore. There have been too may defaults recently and lenders are justifiably leery of the extra risk.

Over extending your ability to pay is the quickest way for a person to lose their home when they cannot keep up the repayments. So be careful how much money you agree on a home improvement loan and wherever possible only borrow enough to carry out essential repairs.

Technorati Tags: home improvement loan, Remodeling

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The past several years have seen virtually all of the easy to obtain no money down loans disappear. In fact, in order buy a home with less than a 20% down payment you now need a high credit score and an income that can make the payments without any paper tricks. Mortgage underwriters are scanning documents more closely and the requirements have tightened with further tightening expected down the road.

Some people would have you to believe that because of this it is now impossible to get into a home with no money down or with less than perfect credit. Well, that just is not true!

You can buy your home with no down payment and with no credit qualification - if you go about it the right way. And that isn't through some foreclosure scam presented at the latest get rich quick seminar.

One of the best ways to do this is through buying your home subject to the existing financing. In this way you do not have to qualify for you own mortgage. You will use the existing mortgage obtained by the current home owner. More home owners are faced with mortgage payments they can no longer afford because of increasing ARM payments or job lay-offs. Many of these owners would love to have a third party - like you - come in and take over their payments.

Real estate investors have used this "sub 2" or "subject 2" method for years but it is not well known outside of the investor market. For the past couple of years Mark Evans has been making available a free course of buying property "subject 2" called Sub2Magic.

Before you give up all hope of buying a home in this market, get on Mark's list and learn how you can join the professionals and buy your home with Sub2Magic.

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Technorati Tags: mortagages, sub 2, subject 2

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This in turn can lead to having defaults, County Court Judgements (CCJs) and even bankruptcy. Even if the problems are short lived they can still tarnish your credit record and make it difficult for you to obtain finance.

There are no accurate figures on the amount of people that get turned down for a mortgage from a high street lender, but it is widely estimated that it is about 1 in 5. Generally this is due to minor misunderstanding and can often be resolved. But even after this it is estimated that one in eight people will not be able to get a main stream mortgage and have to go to a specialist lender.

Why Do People Get Turned Down For Credit?

There are a number of reasons and situations for which someone will be turned down for a mortgage. It may simply be that the applicant has put down some incorrect details on the application form. Another reason might be that your previous landlord did not bother to confirm that you used to pay the rent on time.

Another more serious reason that people get turned down for a mortgage is that they do not have enough credit points. When you apply for a mortgage the lender will carry out a credit check on you.

You will gain credit points for a number of reasons for example if you have had the same
address, job and bank account for a long time. Also people that keep up to date with repayments will gain points as well. But you will lose points if you have defaulted on debts, fallen behind with bills, have CCJs or have been made bankrupt.

What Can You Do If It Happens To You?

If you do get turned down for a mortgage or loan the first thing you should do is find out why. If you did fail a credit score the lender may not tell why, the credit agency that they used will know. It may be a mistake on their part, or an old default that should no longer be on your file.

The best thing to do is to get hold of your credit record from one of the agencies. The three main agencies are Equifax, Experian and Call Credit. If there is some kind of mistake then you can get it sorted.

Another reason that you may get declined a mortgage or loan is because you have not built up enough credit history. If this is the case then it might be an idea to take out a couple of good credit cards (there are always good deals to be had). Use them to purchase things and pay them off straight away.

What If You Have Had Serious Credit Problems?

If a high street lender turns you down for a secured loan or mortgage, then you will need to look towards the sub prime or bad credit market place. These specialist lenders have a vast array of bad credit loans to cater for people in a variety of different situations. Whether it is just a defaulted credit card that happened 12 months ago for 300 or a recent CCJ for which you still owe thousands. Whatever your situation is the chances are you will be able to find a lender.

Generally the worse your credit history is the higher the rate of interest you will pay, this is because you pose a higher risk to the lender. For example if you have two CCJs you will pay higher rate than someone who has a single default. The good news is that you have plenty of choice, there are thousands of deals out there for people with credit problems.

The easiest way to find a deal and suitable mortgage or loan product is to use a broker. The broker can carry out a credit search and based on the results they will be able to determine what your best options are. The majority of the bad credit lenders are not household names. Some of these lenders are owned by American companies and others are subsidiaries of high street lenders.

Getting The Best Deal

As previously mentioned the worse your credit history is, the higher the interest will be. If you have a light bad credit history, then as long as you keep up with repayments then you might beable to switch to a mainstream deal after two years.

If you have heavy bad credit history then you may have to wait three years before switching
lenders. So for this reason it can be advisable to avoid products that tie you in for long periods.

So when the deal comes to an end, and you have kept up with your repayments you should look to move to a standard deal, possibly with a high street lender. Hopefully by this time your bad credit history will be long behind you.

Chris James enjoys writing on a number of areas in the finance industry. He is a bad credit loans consultant for Adderson
& Co

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Times are changing. I just ran across an article by Igor Buces that encourages sellers to do just that. Following are excerpts from his article so you can see the problem a little bit from the side of the home seller. If you understand where a seller is coming from and what his/her problems are, you can do a deal!

Given the present economical conditions and the large amount of homes for sale, you need to become a creative seller to have your home sold quickly and for top dollars. To do so, you must be able to offer people different alternatives and reasons to buy your home.

One of the best ways to attract buyers is by offering buyers owner financing. National statistics show that sellers offering owner financing attract three times the number of potential buyers. With three times the buyers, it's more likely that you'll sell your home faster.

The reason this method works so well is because many people are scare (sic) to fill a mortgage application or have been turned down in the past for a loan and don't want to repeat the same experience.

However, there are some disadvantages when using owner financing. The main problem has been that it forces the seller of the home to hold a note for a long period of time. Since most people need the money to get into a new home, the owner financing option has not been a realistic solution for people needing to sell their home quickly.

However, to go around this problem you can simply contact a note buyer in your area and set it up so that the note buyer will buy the note you just created at the point of closing. Usually, you'll end up getting about 91% of the value of the home. Although this may seem as a big discount, you need to realize that by offering owner financing, you'll sell your home sooner and for a higher prices since there will be more people interested.

There you have it. An authority pointing out the current reality to home sellers and presenting a solution to the problem. Keep this is mind and maybe even offer up the solution yourself to a reluctant owner of a "For Sale By Owner" home.

Don't feel that your alone or are blazing a new trail her. Tens of thousands have gone before and bought their home with no credit and without having to qualify for a mortgage.

If you would like to read to complete article by Igor Buces, go to Miami Mortgage.

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Have you ever considered the option of buying your home "Rent to Own"? If not, and if you're still struggling to finally get into a home of your own, it is definitely something worth considering. While this is an attractive way to go for many, Rent to Own also offers a few pitfalls for the unwary.

When you rent to buy, you enter into a rental or lease contract with the property owner and agree to purchase the property in the future. The length of this agreement is commonly 3 years, with some agreements stretching out to 5 years and some shorter.

The purchase price is set in the beginning but is based on the expected property value at the time the property is sold. For example, if the property value today was $100,000 and you agreed to purchase it 5 years from now, the agreed purchase price would be around $160,000, assuming an annual appreciation of 10%. Of course, this is only a projected ball park number and is negotiable.

Setting the future purchase price is really a crystal ball effort. If the property appreciates at a greater rate than estimated, the buyer (that's you) wins. If for some reason property values stagnate, you could lose. But, that is one of the uncertainties that face any property owner.

The greatest appeal to buying "Rent to Own" is that you do not have to qualify for a loan from a mortgage company. Many investors actually look for buyers with credit difficulties and assist them in getting their credit cleaned up or established so they can qualify for a regular mortgage when it comes time to purchase the home.

Your monthly rental may be higher than for a straight rental home. On the other hand, you may be able to negotiate with the seller to have a certain percentage of your monthly payment credited to the purchase price. Rental credit typically is about 50% but some investors will actually credit all of your rental to the purchase price. Again, this is negotiable. Strike as hard of a deal as you can. And keep in mind that if you move and do not end up buying the home for any reason, your total rental is forfeited! No Refunds.

You will also have to come up with an upfront deposit that can range from 3% to 10% of the market value of the home. Again, this fee is normally not refundable if you fail to complete a purchase so you need to be fairly sure that you want the home. Unlike a straight rental where you can pick up and leave and maybe only lose a month rental and cleaning deposit, there can be serious financial consequences if you do not go through with a purchase.

"Rent to Own" properties are fairly easy to find and range from starters to up-scale homes in nice neighborhoods. But not every home can be purchased this way so the trick is finding the right one for you. Look for signs and ads saying "Rent to Own", "Owner Carry", "Owner Financing", "Lease Option" or something similar.

Also check any For Sale By Owner ads. It may not have been the owners' intention to sell the home on contract, but it never hurts to ask! And don't let potential negatives of "Rent to Own" discourage you. They are only negative if you end up not buying.

Next time, we'll discuss more of the "positives".

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