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    joshandmandy08's Avatar
    joshandmandy08 Posts: 1, Reputation: 1
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    #1

    Jun 7, 2008, 06:08 PM
    Buying a house with no credit
    I want to buy a house with my boyfriend but we both have no credit.
    I know we can't pay for a 20% down payment is there anyway we can get a house under these kind of circumstances??
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
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    #2

    Jun 7, 2008, 06:13 PM
    None that I can think of. You must have some sort of downpayment to get a conventional mortgage. You can look into a land contract arrangement, but whatever money you put down and pay can be gone in an instant if you miss one payment, etc. and you won't get back a dime. It can be done, don't get me wrong, but those are risky for folks who don't have much extra money to lose. Right now I guess you are stuck renting until you can build up some sort of credit. Look around for some "owner financing" deals as well and see if you can find something from an owner. It's also hard when you are just boyfriend and girlfriend versus husband and wife also. Folks tend to shy away from boyfriend and girlfriend situations.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #3

    Jun 7, 2008, 08:00 PM
    If it "no" credit or is it bad credit, the two are different.
    In some areas there is state or local assistance for down payments esp if you are willing to move into depressed areas. Your local real estate agent will know what if any grants are available.
    Also is anyone a VET, to qualify for a VA loan

    But if none of the above fit, you may find a private owner willing to hold the mortgage, expect to pay higher interest and pay more for the house than normal, but it is often a way.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
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    #4

    Jun 8, 2008, 09:08 AM
    Josh and Mandy,

    First question is the same as above. Do you have poor credit or ZERO credit? That does make a difference.

    If you have ZERO credit, you could always look for owner financing or check out one of the rent-to-own home companies. If you are in the home for 12 months and they report your payments to the CRAs, it will help build your scores.

    If you are able to get an FHA loan then, they will allow you to use "alternative trade lines" meaning showing payments on time on cell phone bills, utility bills, gym memberships, insurance, etc. Just be aware that any loan program right now is a moving target because of changing guidelines, so what works today may not work next year.

    If you have credit issues, especially late payments in the last 12 months, you may have a hard time getting a loan. Most lenders really want to see that you can borrow and pay back on time before they will make the loan.

    Go to www.annualcreditreport.com and get a copy of your reports for both of you. Make sure anything and everything is accurate.

    Feel free to post again if you need more info.

    LG

    PS. If you are young and just starting, do it right. So many people get buried in debt right away and it can be difficult to recover.

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