7 Thoughts on what is the best way to get into your own home when you don’t have no credit? I don’t have bad?
  1. Reply
    Rick B
    March 1, 2014 at 4:10 am

    don’t have no credit?

    The best way is to build some credit or find a mortgage company that does manual underwriting. They will look at your income, your job history, etc.

  2. Reply
    March 1, 2014 at 4:16 am

    Pay cash for the home. Easiest cheapest way to do that, is buy a piece of land with an old trailer sitting on it.

  3. Reply
    March 1, 2014 at 4:55 am

    With the current disaster in the housing/credit market many people with credit can not get a mortgage. The one exception is veterans who are eligible for VA backed loans. That is how I bought my house.

  4. Reply
    Joe C
    March 1, 2014 at 5:03 am

    Check with your bank.

    If you have a 20% downpayment, proof of stable income, etc.

    Most banks will work with you on a loan.

  5. Reply
    March 1, 2014 at 5:16 am

    As long as you have a good down payment and enough income, you don’t need a credit history. As long as you don’t have a NEGATIVE credit history, find a bank that will still do ‘Manual Underwriting’. That is the industry term for the method ALL lenders used before FICO was invented.

  6. Reply
    David M
    March 1, 2014 at 5:26 am

    I agree with mbrkatz. If you want a home with no credit, you need to pay cash. Buy some vacant land, buy a nice used trailer and move on in.

  7. Reply
    March 1, 2014 at 5:33 am

    You don’t need a credit rating for a home loan. I got by fine with a great savings history, a 30% deposit (you would probably get by with 20%) and a history with the same employer for 2 years.

    If you want to build a credit rating, get a credit card, and use it for a regular purchase, like petrol for the car. Then, pay it off that same week, putting an extra dollar into the account, so it is always in the black. Your credit rating will ROCK if you do this. Banks will throw themselves at you. So make a plan and do this for 12 months, while saving for a big deposit. The bigger the deposit the better. If you have 20% or more, you don’t need to pay mortgage insurance, which protects the bank, not you, if you default. Avoid this cost, and the cost of excessive interest, by saving a big deposit at a bank. Lenders like that very much. Have a big deposit and you’ll be miles ahead of everyone else.

    Buy a modest home in a good area, so you don’t overborrow. If rates rise, you will be okay because you have not borrowed too much. I’m in Australia, and we’ve had interest rates go up 1.25%, officially. My lender has raised our rate by 1.4%. If we’d borrowed beyond our means, we’d be in deep crap by now, but we didn’t, and are actually years ahead on our loan. And we both earn minimum wage. We just watch our spending.

    Best wishes

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