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There are a few different ways you can go about buying a house when you have lower than average credit. Two of the most popular ways include seller financing and lease-options. Look for sellers who do not necessarily need to cash out of their house when they sell it. Sellers who are willing to hold onto their current financing can use either of these options. Set up a land contract with the seller and you will pay them instead of paying a bank. Interest rates are typically going to be higher going this route, but it can get you in the house. A lease-option is another way you can buy. A lease-option lets you rent the property from the owner, with the option to buy it for a pre-determined price before a certain date. Payments may be a little higher than market rents, but usually a portion of the rent payment is applied towards the purchase price should you choose to exercise your option to buy. This is an excellent route to take if you need a little time to repair your credit. A good seller that sets you up on a lease-option will enroll you in a credit program to help you get your credit in order, so that by the time your deadline for the option comes around, you are able to purchase. Remember, these two ways can work well, but the seller has the right to do a credit check and it is at their discretion as to if they want to move forward with it or not. Don't give up if the first few decline. Also, just because a property is not advertised as being available for lease-option or a seller contract, does not necessarily mean that it is not. Many sellers (and unfortunately some real estate agents) don't know that these are even an option. It never hurts to ask.

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