Home Buying in Janesville>Question Details

Aaron Romano, Home Buyer in Beloit, WI

What do you do when you dont have credit to get a loan? Thanks

Asked by Aaron Romano, Beloit, WI Thu May 5, 2011

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I know that this may sound like a crazy idea, but how about renting until you establish enough credit?
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1 vote Thank Flag Link Thu May 5, 2011
HI Aaron, you can apply with companies like fingerhut and shopnow.com to start a credit line. These 2 companies we know will give credit to someone who has none or has slow credit. they will not usually check your credit and will report to trw, equifax, etc if you pay on time and a bit over the min.payment you will have a credit in about 18months which will help you in buying a home. most mortgage companies do like to see over 2yrs of good credit but you may get your foot in the door to homebuying. You can also get a co-signer who already has good credit. remember you'll need downpayment and employement so if you go with a co-signer make sure it's someone with employment over 2yrs.

All the Best
Dave & Lisa
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1 vote Thank Flag Link Thu May 5, 2011
You don't get a loan. If you have absolutely no credit, no lender will be able to issue you a loan. If you have poor credit, there is a possibility, but with no credit at all it only equals no loan.
0 votes Thank Flag Link Mon Jul 22, 2013
With the guidance of a reputable lender they can put you on the "Pathway to Home ownership". I can assist you in finding your first home. Give me a call at 608-921-6777. BuynSellwithMaryann.com
0 votes Thank Flag Link Mon Jul 22, 2013
Aaron,
First of all..Good for you! Get out there and make something of this current economy in Rock County. I would check with your personal bank and see what they can do for you. If they cannot help you, feel free to give me a call (608)290-9538. I am a Sales Agent for Realty Executives and own my own Real Estate appraisal company in Janesville. I have dealt with the good AND the bad lenders working on the appraisal side. It is not our place to tell you what to do, however a good local real estate professional is what you need to help steer you in the right direction. If you want my opinion feel free to contact me anytime.

Thanks, Brady
0 votes Thank Flag Link Tue Jul 19, 2011
you stated you are self employed. To be able to use your income you will need to have been self employed for 2 years. FHA does allow non occupying coborrowers. Do you have someone with enough income that would be willing to cosign for you? If you want to give me a call at (920) 788-9608 I would be happy to discuss ways you can start to build your credit. Just because your 18 doesn't mean you can't purchase a home.
0 votes Thank Flag Link Tue May 10, 2011
Thanks for the answers. I guess i should have made myself clear! I am going to be 18 in in two months and I own a landscaping business and do 50 lawns a week. I dont have credit and I am getting married in june next year so will need a house and will not be able to rent only because I own so much equipment. And I will have more than enough for down payments but not enough for a whole house. So if you guys have any more ideas please let me know and thank you so much for the answers already! Will a lender lend to a guy like me who really cant prove income or is there a way to prove income? Thankls!
0 votes Thank Flag Link Fri May 6, 2011
Dozens of possibilities:

Pay cash. (Don't laugh. Quite a few folks who've gone through a foreclosure haven't been paying their mortgage for a couple of years. With the collapse in prices in some areas, they now have enough to pay cash.)

Don't buy. Rent until you can rebuild your credit.

Have someone co-sign.

Look for owner financing.

Look for lease-options/rent-to-own.

Look for someone (friend, relative, etc.) to do an equity share arrangement.

Look for an investor who's willing to do creative financing.

Look for private financing.

And the list goes on. But that should get you started.
0 votes Thank Flag Link Fri May 6, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Hi Romano:

You have a couple choices such as leasing to own or finding a owner who will carry a loan (surprisingly called an owner-carry). There are several websites on which you can find lease-to-own properties (check google), which may be your best bet of these two options because an owner-carry requires that you convince the owner that you really are good for the payments. This may be hard if you have bad credit or little credit history.

However, you should talk to a lender. Mortgage brokers can help you figure out what you need to do to repair your credit if it is bad. If your problem is that you have a limited credit history, a lender may be able to establish that you are a good credit risk by looking into payments that would not feed into your credit score, such as utility payments, rent payments, etc.

If you do need help understanding your credit score, I would suggest you check out my blog post at: http://www.trulia.com/blog/rovtar/filter/category/Credit_Score/56

Best,
Ron
0 votes Thank Flag Link Thu May 5, 2011
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