If you're looking to learn how to have a home built with bad credit, you might be going against the wind but it can be done. Having bad credit affects your life in so many ways, especially when going for a large purchase, such as having a home built or buying a new car. It's worthwhile to make sure that your credit is good throughout your life as it takes a while to repair bad credit. But, if you've got your heart set on having a home built with bad credit, come along and get some tips to do just that.
- Ask a friendly realtor or the home builder for the names of some lenders who specialize in lending to high risk applicants (people with bad credit). They might not be easy to find but such lenders do exist. Obviously, you'll pay a higher percentage for your home mortgage due to having bad credit but that's to be expected.
- Getting a home built with bad credit will be much easier if you have a co-signer for the loan. If you have a family member who is willing to co-sign for you, you'll have a much easier time qualifying for a loan. The negative for the co-signer is that their credit may be adversely affected by having your bad credit attached to their good credit. Be careful whom you ask to co-sign as it's a difficult conversation, particularly if the answer to you is "no."
- Have at least twenty percent cash available for the down payment. A lender will be much happier lending you money to have a home built with bad credit if they know that you're at risk also. It's harder to default on a loan when you personally have a lot of money tied up in the house.
Obviously, the easiest way to have a home built with bad credit is to never get in that situation in the first place. Plenty of people live within their means and so can you. Pay off your loans on time or, if you're going to be late on a payment, call the lender and let them know. No one wants to have bad credit, particularly when it comes time to build that home.