How do I buy a house with not so good credit?

[Consuela Odueke]

I've been interested in investing in real estate for about 7 months. I started out wanting to wholesale to build capital, but I am not having any luck with finding a deal. I want to attempt house hacking. I have a fair credit score.

[Brandon Miles]

Hi Consuela! 

You have a lot of options  depending on what kind of home you want to purchase.  Im going to assume you are wanting to do a single family home or a small multifamily home. 

Single family options

1.  Seller Rent to own- This is when you find a that is being sold by owner. You pay the owner directly instead of a bank, this can be advantageous due to the fact that you really write you own ticket. Typically you will pay a higher  interest rate but, it wont go on your credit report unless you need to take a loan out for a small deposit. 

2. First home buyers program- you can typically get a exceptional rate for being a first time buyer. FHB typically have to get a loan but you can qualify without a down payment, so if your credit is good you can get into this  program relatively easy. 

Ill leave you with those for the time being. Its hard to recommend any specific type of program due to not knowing what your objective is.

Multifamily Options:

1. Seller financing-Same as above.  Some people are just really tired of managing their own properties and what out of them as soon as possible. "Why would they sell to Me" is a question when i talk to people. the answer is really simple, because they are fed up with the amount of work they have to do. a lot of people jump in to investing and have no idea what they are doing. 

2. FHB- Almost the same thing as above, but better. You mentioned wanting to house hack so i think this might apply for you. do some research on your particular state but i know that in my state i can purchase a multifamily home with a FHB program as long as it doesn't have over 4 units and i live in one of them. This is perfect for house hacking. you can live in 1 apartment and then make 3 other people pay your mortgage, Living for free sounds great to me. 

3. Make the asset secure itself- In larger multifamily homes you dont have to actually have all of the cash on hand. the asset will secure itself due to the nature of the facility.  Most banks will look at the properties books and determine if its profitable.  

I hope this gets the creative juices flowing. Remember, its not that you cant get a loan. It "How can i get a loan" . Add some tools to your tool belt and have some fun. 

Best of luck.