You probably donâ€™t want to hear this, most people do not listen when the truth conflicts with their desire, but here goesâ€¦
Fix your issue and then buy a home.
Someone motivated by the fear caused by not being able to borrow the money for a purchase through normal lending channels will often make the problem worse. If you have been turned down for a mortgage and are desperate enough to try and â€œwork aroundâ€ the system that is in place to protect you, then the chances of you being hurt financially increases dramatically.
People are not aware there are existing guidelines covering rent to own transactions that a mortgage underwriter must follow when the â€œBuyerâ€ tries to pay off the seller. And that the guidelines are specific not only to the wording of the contract but also to the type of loan being used.
Want more? How about a big one? Individuals that think all they are trying to overcome is one specific timeline that has derailed their plans are about as far from reality as you can get. I had someone call me just last week who thought the timeline was behind them by 6 months, they were still several years out. This stuff doesnâ€™t take place in a vacuum; the mortgage underwriter MUST look at the entire picture, not just a single timeline.
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Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.