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It seems as if now is the time to buy.  With all of the tax incentives, the foreclosure prices, where banks are almost willing to give the house away, you’re probably wanting to jump right in on the boat.

So, what happens if you’re looking to purchase a home today, but you don’t have the credit to do so?  Well, I wanted to give you some tips that can increase your chances at landing that home.  You will find that there are some alternatives, so don’t give up just yet!

#1 Talk with a mortgage broker

These people want to make money.  If you haven’t met with one yet, they will try to get the job done for you.  Most of the time they will try to find a solution for you.  If they can’t find you one, you don’t have to give up just yet.  I would advise that you talk with at least 2-3 of them.  It’s 100% free to do so.

#2 Prepare for 20% down

If you don’t have 20% to put down, you’re going to have a hard time, even with great credit.  With the restrictions that have been placed with the banks and everything else, you’re going to find that many of them are going to buckle down.  The more you have to put down, the better it’s going to be for you.

#3 Try to get a co-signer

If you can get someone to co-sign for you, this is going to increase your chances big time!  Ask family, friends, or other relatives. Explain your situation and see what they can do for you.  What you’re going to find out is that many are going to say, “no”, since they will be held responsible as well.

#4 Look for resources

A mortgage broker may be able to help you with this one as well.   You may find that you can get government assistance in the form of grants, or other type of programs.  You will have to meet certain criteria in order to get approved for them.  HUD has a great resource page that answers many of your questions.

#5 You may not need the mortgage

Home prices are really cheap and you may find that you may  not even need a mortgage.  In my area, I was able to find a condo for $35,000.  This same condo was $112,000 3 years prior.  The area is safe and it was a great buy!  If you could throw down $10,000, you would only need a loan for $25,000, which you may be able to find.

Don’t give up on your search because you  may find that a lot of people are going to say, “no.”  If you’re getting this a lot, you may just want to rent for a few years until your score rises a little bit.  Don’t forget to save money as well when you’re waiting!