How to Buy in Real Estate with No Down Payment or Bad Credit

When we weren’t affected by the current economic crisis, it was fairly easy for one to buy real estate with bad credit or no money down the line. This is still possible, however it requires changing how they would approach the situation. In today’s financial times, one is faced with several options including seller financing and many more.

In the real estate business it is common to find two types of people; one who owns a home and the others who have a lot of equity in their home. It is quite common to find homeowners providing financing to multiple buyers in the same way that a bank would. However, you will be required to make a legal note stating that you would pay your landlord on a monthly basis.

When going ahead with seller financing, there are a few things to keep in mind. It is important that one make a contract with the buyer to highlight all the key points that are needed. These would include the total amount to be financed, the amount that they would have to pay monthly along with the interest rate. Both parties have to agree and are legally bound to the contract once completed.

With the current economic downturn, it’s a good idea to get a loan based on your assets. This is more commonly known as a secured loan. You can simply secure the loan against your house, a car, stock bonds, or something else that is valuable.

If you find yourself suffering from bad credit, you can still get a loan through hard money lenders for the use of buying real estate. However, what you need to keep in mind is that since you have bad credit, you will still have to pay a higher interest rate compared to someone who does not have bad credit.

The difference you will notice about any hard money lender is that they take all aspects into consideration. They take note of the various market conditions and the property you are looking for before approving the loan.

The main concern that the lender would have is that of the house. If they know that it is a profitable investment and that they would receive their monthly installments on time, then they will be more than happy to lend you the money.

Although many may tell you that it is impossible to buy real estate with bad credit or no down payment, it is still possible in the current economic downturn. It just takes a little time to look around so you can find a good deal.