Bad credit is frustrating and can happen to anyone. Divorce, credit card debt, job loss—are all common factors when dealing with bad credit. Thankfully, as you work your way toward better credit, it doesn’t have to control your every move, especially when it comes to where you want to live. You can possibly still buy a house with bad credit in Georgia. Let’s look at how that’s done.
Rent-to-own is also called a lease-purchase, meaning the buyer rents the property for an agreed-upon length of time before buying. The terms vary depending on what each party decides. An attorney, of course, is pertinent in a rent-to-own situation for the protection of all involved.
In the case of owner-finance, the buyer usually needs a sizable cash down payment. Then, the seller agrees to carry back a mortgage on the home and essentially becomes like a bank to the buyer. An agreed-upon deal is made, and the buyer makes payments to the seller rather than to a traditional bank. Payments include interest. Just like with most agreements, an attorney draws up the paperwork after the terms are agreed upon. It’s rare to get sellers to agree to an owner-financed deal, but it does happen. It’s worth a shot, especially if a seller needs to get out of their house quickly.
The FHA loan program is more often used for first-time homebuyers but isn’t for first-time buyers only. FHA accepts credit scores as low as 580 and sometimes lower if a hefty down payment is possible. Usually, the down payment needs to be at least 10 percent of the purchase price if the credit score is below 580.
With these three ways to buy a house with bad credit in Georgia, homeownership may be closer than you imagined. Talk with a trusted real estate professional to see what type of loan you qualify for. Excalibur Homes, voted “Best in Georgia,” is your trusted source for all things real estate. We help our clients buy houses in Atlanta and all surrounding areas. Contact us, and let’s get you in the home of your dreams.