No Credit Required Options - The 30/70 Rule

If you still can’t qualify for a loan, or would just prefer not to, here is one of the basic methods for buying a house with no credit check required. This is one of several popular methods for buying with no credit check, and is used by home buyers and sellers everyday. For more ideas on how to buy a house when you can't get a loan, check out our website at http://I-can-buy.com.

The 30/70 rule says that anyone can get a loan with enough money down. Often a bank will give you a loan no matter what your credit is, if you are able to put up at least 30% of the value of the home as a down payment.

The reason for this is that the bank has less to lose if you walk on the loan.They can probably get most or all of their money back if they have to sell the house. Plus, they know when you invest that much, you are less likely to walk away from the house, so it is a better risk for them all around.

You may be talking about a pretty high interest rate on the loan, because the bank may still be worried about the poor credit rating, but you do have the option of refinancing later on. Friends of mine, Rob and Melody, moved to town and needed a house. Because Rob was a pastor who wanted to start a new church, he and Melody had no current income and their past income was not steady. They did have a lot of equity in the home they had just sold. So they were able to find a loan, despite their situation, because they had at least 30% to put down. The interest rate was high, but after two years of good payments, they were able to refinance the loan at a much better rate.


This has been an excerpt of the book by Alex Dey called Buying a Home When You Have Bad Credit. This is a free ebook that can be found on our site at http://I-Can-Buy.com.


Buying a Home When You Have Bad Credit is written by Alexis Dey, Copyright © 2005-2006 Mohave Publishing. All rights reserved. This book is protected by international copyright law. You may not otherwise resell, reproduce, distribute, publicly perform, publicly display, or create derivative works of this material, unless authorized by Mohave Publishing.