Credit score required for owner financing in Houston TX

credit score required owner financing houston

As we help credit challenged people to buy homes with owner financing, one of the most frequently asked questions that we come across is this: Does a buyer need a certain credit score to qualify for owner financing? The short answer is – it depends. In most cases you will qualify for owner financing with bad credit or even no credit. But it depends on how you negotiate with the seller.

At Shop Owner Finance, we help people buy homes with no credit check or income verification. An investor from our network buys the home from the seller on your behalf in the traditional way and owner finances it to you immediately. In other words, you are not directly buying from the seller but the investor. And this is why our real estate brokerage service enables you to buy any home you want with no credit check in an owner financing arrangement.

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Now let’s discuss what role credit score plays in home buying at large and owner financing in particular.

What credit score do you need to buy a home?

Typically, you need a minimum credit score of 620 or more to get a mortgage from conventional lenders. A credit score of 620 won’t guarantee you the best interest rate and terms. Experts say you need 720 or more to get the best rates.

The problem most people face is that past financial mistakes bring down their credit score and they find it extremely difficult to get a mortgage. Even missed credit card payments can cause the credit score to drop. If you have a foreclosure or short sale showing up on your credit report, it is unlikely that a lender will approve your mortgage application.

So if you have a bad credit, you need to consider other financing options. Owner financing can enable you to fulfill your homeownership dream with no credit check or income verification.

Credit score required in owner financing arrangement

In an owner financing arrangement, you borrow from the seller and pay him or her monthly installments just like you do when you take out a mortgage from a bank.

We wrote a detailed article on how owner financing works. Click here to read the article.

What makes owner financing a great option for credit challenged homes buyers is the fact that the financing contract can be customized. So if you can get the seller to agree to a no-credit-check or income-verification arrangement, then you don’t need any credit score at all.

Most people sell their homes in the traditional way because they want to get all the cash up front. Moreover most people are usually wary of selling to someone with a bad credit score. So it’s very difficult to find a home that’s up for sale with owner financing in Houston TX.

How to buy a home with no credit score

If you want to buy a home in Houston TX with a bad credit score, owner financing is definitively a great option.

Here at Shop Owner Finance, we can help you buy any home with owner financing in Houston or anywhere else in Texas even if you have a bad credit score.

We have developed a network of investors who will buy your dream home from the seller and owner finance it to you immediately.

You are assigned a real estate agent who helps you find a home in your desired neighborhood, writes up the contract, negotiates with the seller on your behalf and get you through the closing. The process works just like it does when you take out a mortgage from a bank. The only major difference is that you are borrowing from an investor rather than a bank.

Visit our Testimonial page to watch some of our clients explaining how our real estate brokerage service works. Also visit FAQ page to get answers to some of the most frequently asked questions.

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