Beware of Two Popular Ways to Finance a Home with Poor Credit
Owning a home is the American Dream. In fact, most renters in a recent survey indicated that they’d like to buy a home. But the combination of tightened mortgage requirements after the 2008 housing crisis and the slow post-recession recovery of employment and income for many Americans has meant that many people may not qualify for a conventional mortgage. Having a spotty or poor credit history makes it hard to meet these mortgage requirements.
In these circumstances, alternative home financing methods such as rent-to-own contracts and land contracts can seem like an attractive way to purchase a home. However, opting for such methods can be a big mistake for many would-be home buyers.