Many people think you need good credit to buy a house, but that is NOT true with owner financing. Owners don’t care about your credit score. They care if you can help them with their problem.
While the traditional path to buy a house is chock full of headaches and credit checks, this is just NOT the case with owner financing deals. Naturally, this is why I LOVE owner financing and you should, too!
Do You Need Good Credit to Buy a House with Owner Financing?
I have asked my ladies and other real estate investors I know if any of them have had a seller check their credit. CRICKETS…. The quick answer is nope, not one of them. Because the mortgage broker is going to check your credit, the banker is going to check your credit, the loan officer, credit union people, etc. are ALLLL going to check your credit a bunch of times. And guess what? All of those checks count against your actual credit score. Brilliant, right?
But, not so with owner financing. You don’t need good credit to buy a house with owner financing. The owners don’t CARE what your credit is! They only want to know if you can work out a plan with them to take care of their issue with the property. While banks and traditional mortgages used these three little numbers to tell you what the interest rate will be and how good of a deal you’ll get, owners don’t do that.
A seller cannot check your credit. They are not set up to do that and do not have the ability.
The biggest reason why they don’t check your credit is that all they care about is the money, the money, and the money. They want to know if they are going to get their purchase price or not, monthly payment or not, and how long it will take you to make your first payment. This is all they care about, so you do not need good credit to buy a house. Maybe the traditional way, but not with owner financing.
Now, sellers will be a bit nervous about these things until they receive some money from you. Since the first official payment can usually take a few months, I recommend giving them a little money for an earnest deposit. Even $10 or $100 goes a long way to show you are serious. The seller just wants to feel comfortable and confident in the deal and in you. They cannot really check to see if you have good credit to buy a house, but they can determine if you are trustworthy by your actions.
I had a deal one time where I gave them a $10 bill and let them know I would give them “some more money” in six months. They did NOT care if I had good credit to buy a house, or what else I had going on because I solved their problem in a way they understood and appreciated. And, they gave me six months with no payments!
So, let me ask you this, if you do not need good credit to buy a house, you put $10 down on a property, and you have 90 days until your first payment is due WITHOUT a large lump sum payment of cash, how many deals can you do this week?
Seriously, if it only takes $10 to close a deal, how many can you do?
You don’t need good credit to buy a house…you need courage! This is stupidly simple, but so many people get caught up in fear and worry. They get stuck and do not take the massive action that is needed. You gotta have GRIT if you want to become a serious real estate investor.
The sky’s the limit for you! You can do as many deals as you want to as long as you set up the right kind of deal with the right sellers. Then focus on the right buyers who will take this deal from you so that you don’t have to make that payment in 90 days! Boom!
That BETTER have just blown your mind because if it didn’t you aren’t paying attention.
It is SO awesome to sit at a closing table with total excitement because you get to do this. I have been helping the ladies in FDDF to do the same thing for years! It is the BEST!!! And I hope that you will join us with FDDF because I don’t want you to be one of the people who sit on the sidelines but won’t take action. You are worth more!
If I can do this, you can do this. I have SO many ladies in FDDF who do all the things we women do and STILL invest in real estate. There is nothing holding you back unless you let it! If you need the invitation, this is it. Come on in…the water is great!
So, no, you do not need to have good credit to buy a house with owner financing.
Don’t let anything hold you back from your dreams. It is time to see your life change for the better, but you have to be willing to get to work. Now’s the time!