Many people have inadvertently pushed themselves into a tight corner out of ignorance! Well, don’t be surprised that I’m referring to you if you’re one of the kind of people who have resigned themselves to fate about their chances of buying a home because of their “poor credit.” Yes, I am saying that many people believe that buying a home is difficult and requires the establishment of a good credit standing before they can take that important step toward home ownership. That is absolutely false. The truth is, it’s easier to buy than rent a home, and you can buy a home regardless of your financial situation or credit score.

Many of the newer government programs will allow the person without any credit or money to buy a home, and if you have major credit problems, it won’t stop you from buying a home either. You just need to use creative financing techniques to become a homeowner. Keep in mind that owning a home doesn’t require money, it doesn’t require a good job, and it doesn’t require good credit. It simply takes the constant use of the right creative financing and techniques with no money down. You can get a home loan even with bad credit, late payments, collections, or bankruptcy. However, this article will address the case of a person who may have little or no money but have some assets in this article and if you fall into this category and think it will be difficult for you to obtain a mortgage loan to buy a home, you are in for a nice surprise! In this regard, I will now give an illustration so that you can see the possibilities that you may have been overlooking out of ignorance.

Suppose you approached a lender today and said, “I just found this wonderful house for $150,000 and I want you to lend me $120,000 and I’m going to get a $30,000 loan from my credit union to pay off the balance.” lender would most certainly say “no.” The general rule is that a lender will not allow you to borrow a down payment for a property purchase and if they find out that you do, you can be sure that no matter how well off you are financially or in terms of credit, your loan will apply. will be rejected. It’s as simple as that, and his reasoning isn’t hard to understand: You can’t be a good enough credit risk to be loaned $120,000 if you’re not good enough at money management to save the down payment.

However, there is one exception to this rule: If you are borrowing money for a down payment against an asset you already own, then the lender will have no objection. This exception opens up many possibilities for the person with assets but little or no cash. Do you have a house with equity? Are you a car aficionado with a valuable classic? Do you have a house full of beautiful furniture? Or do you have a great stereo system? Whatever the asset, you can go to your local finance company and get a loan using that asset as collateral and then use the money as a down payment on the property you want to buy. That settles it and you are a homeowner!

Thats not all. Contrary to popular belief, you probably don’t need to raise as much as you think. If you were buying the aforementioned property with a Federal Housing Authority loan, the lender would require a total investment from you of only about 6% to 7% of the sales price, in many cases even less, or about $9,000, and that includes the down payment and closing costs. Can you see what I mean?

That is the essence! Now you must stop wallowing in ignorance. Get up now and go for the house of your dreams. It can be yours and it will be yours!