Chapter 6: More Ideas 


If what we have learned so far has not been enough for your eager mind, I have still more ideas on how you can buy a home when you can’t get a loan.


Mix and Mat ch


This is w here yo u get to be creative and put several techniques together.  For instance, you find an investor who with a home that has an older assumable loan and is willing to carry the 2nd mortgage for you .

Or to be more creative, you could rent-to-own a home for 5 years.  At the end of the five years you purchase the home by doin g a wrap-around mortgage with the owners VA loan, and to sweeten the deal, you throw in that boat that has just been sitting in storage costing you money, and get an additional $6000 off of the purchase price of the home.

I think you get the idea now.



Find a Ret urned or Repossessed Mobile Home.


Don’t just look into houses. In some areas mobile homes are a good deal.  In some areas of Arizona, for example, the land prices are rising so fast that it makes the mobile home worth it, even it the home itself depreciates every year. You often can find a great deal on these homes, as well as motivated sellers.



Buy Land


When you buy land it is easier to find owners who will carry the loan with no qualifying. If you are a construction type, you can build your own home.

If you plan on building, though, be careful.  Loans to build a home are sometimes harder to qualify for and get than standard home loans. On the other hand, once you have purchased your land you now have an investment property that you can use to sell or trade to get your new house, or at least the down-payment for it. Or save the land until you are able to build.

If you live out in the country you might be able to put a mobile home on the property. Mobile home loans are sometimes easier to qualify for than a house. Even if you can’t get a new one, older ones are often for sale cheap, and can be moved.



Look into Community “Sweat Equity” Programs


Check into community programs. They can be a very valuable resource, particularly if you have nowhere else to turn. Our community has a program that helps single parents and other financially struggling people to build their own home. They use “sweat equity” to make the down payment. It takes almost a year of part time labor, but you get help from professionals and volunteers, automatic equity in the new house, and a loan for the rest, even though you may not qualify under ordinary circumstances.

These sweat equity programs are becoming more and more popular and are getting more funding.  The Bush administration awarded $25 million in“Sweat Equity” grants to communities and organizations in 2003 and the funding continues to go up.

There are now an amazing number of organizations that want to help you get into a home of your own. Besides the many charitable organizations doing this, HUD (U.S. Department of Housing and Urban Development) funds many counseling agencies that can show you ways you can get into a house. Consider taking advantage of the help they offer.  It may take some research, but it could be well worth your time.



This has been an excerpt of the book by Alex Dey called Buying a Home When You Have Bad Credit.




Buying a Home When You Have Bad Credit is written by Alexis Dey, Copyright © 2005-2006 Mohave Publishing. All rights reserved. This book is protected by international copyright law. You may not otherwise resell, reproduce, distribute, publicly perform, publicly display, or create derivative works of this material, unless authorized by Mohave Publishing.  http://I-Can-Buy.com