Some people are unable to get a home because of medical bills, divorce or just bad decisions in the past. This doesn't mean you can't get a home, it just means that you have to find someone willing to help you.
First of all I need to tell you that most people have better credit than they think they do. When someone calls me and tells me that they have to do a lease-option or owner financing because of their credit being too bad, I advise them to talk to a mortgage broker and get their credit checked by a professional. 75% of the time they can actually get in to a home with traditional financing and save themselves thousands in interest.
Then, the 15% that do have bad credit and not a lot of money that need my help, I can get them into homes with little to no down payment through lease-option and in two to three years, with time and a little work, they can get their credit fixed up and get into a home at a pre-determined price.
The last 10% are people that have had credit problems, but have a great down payment and the banks still say no, because of their credit score or child support payments. This group can get into a home with owner financing or lease-option. With owner financing they have to put anywhere from 5%-20% down and the owner carries the additional amount at anywhere from 5%-10% interest. This gives everyone the chance to own a home!
Anyone who can get into an apartment can also get in to a home with the right real estate agent and mortgage broker that will help you work on the credit issues over the time. Avoid quick credit repair companies that promise you immediate credit repair! These companies not only just want your money; they can also, over time, make your credit worse.
Todd Clark (Principal Broker)