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Home All FAQs Getting started in the USA Credit and Mortgage I would like to buy a house. How can I get a mortgage before I established good credit?

I would like to buy a house. How can I get a mortgage before I established good credit?

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There are several ways. Of course, if you have the money, you can always pay cash for the house. But that's rarely an option.

You can ask your real estate agent to specifically find you a house where the seller is willing to give you a mortgage. Sometimes, this is called "seller will carry." In this case, you don't get the mortgage for the house from a bank, but rather you pay the seller some amount every month. Sellers are often individuals and may not always check your credit as carefully.

You can also get a mortgage specifically for people with bad credit. The interest rate may be higher, and you may also have to pay more fees up-front. These types of loans have largely dried up during the banking crisis, though, for good reasons. While there are legitimate uses for it - such as for a new immigrant - these loans also have been very frequently abused.

 

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