No Credit Required Options - Pick up an Assumable Loan

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.

Sometimes a seller has a home loan that is assumable with no qualifying, which means that anyone can buy the house and take over the loan with no credit check. Keep an eye out for these. The majority of loans are not assumable, which means the buyer must apply and qualify to pick up the seller’s loan. It is about the same hassle and fees as applying for a new loan.

If you find someone who has an assumable loan, definitely check into it. The big questions are: what is the assumption rate (usually one point) and what is the loan interest rate? Hopefully low, but if not, you might still seriously consider it. You would probably have to pay higher rates to get a loan through a bank if you have bad credit, anyway. Remember that you will most likely have to give up something (price, terms, location...) to get something (a house with no credit check.)

To find assumable loans look for older FHA and VA loans. Veterans Administration guaranteed loans that originated before March 1988 and FHA loans originated before December 1, 1989 do not contain a “due on sale” clause and are fully assumable without qualifying. Unfortunately these are getting harder and harder to find. Many sellers have refinanced their loans since then, to take advantage of lower interest rates. Also, since the loans are so old, it takes a lot more money to put down and/or finance to finish the purchase. If you do find one of these, perhaps you can use one of the other techniques in this book to finance the rest of the purchase price.


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.