Buying Land With No Credit: Three Possible Ways To Succeed

Purchasing land may seem like an unattainable goal for those who do not seem to fit the requirements needed to obtain a traditional mortgage. Many people today find themselves in this situation due to suffering some type of serious financial issue, such as a bankruptcy, a medical health issue that causes financial strain, a home foreclosure, or the repossession of a vehicle. In addition, many people are also hindered by sparse or non-existent credit histories and many more have sufficient, but sporadic income from alternative or seasonal employment, such as income that results from freelancing, independent publishing, or a farming or cottage industry endeavor. If you yearn for land of your own but need or prefer to work outside of the bounds of a traditional mortgage, these options can help you find an affordable way to become a landowner.

Look for possible land purchase options within your family or circle of friends

If your parents, grandparents, other family members or friends own land they are not using or no longer want, it may be possible to work out an arrangement with them to avoid applying for a traditional mortgage. In many cases, this type of purchase can offer you a similar repayment time frame and interest rate as a traditional bank loan with only a small down payment. To make sure that this type of arrangement does not negatively affect your relationship with your family member or friend, make sure that all details pertaining to the agreement are carefully documented in the form of a legally binding written agreement or contract that will be signed by both parties. 

Look for companies that specialize in selling land with no credit requirements

Another good option to enable you to purchase land without using a traditional mortgage is to locate a company that specializes in selling parcels of land with no credit checks or requirements. Similar to an owner-financed arrangement, this type of purchase typically requires only a small down payment, the first month's payment, and your signature on an agreement to make a certain number of pre-determined monthly payments to complete the purchase. In many cases, you will be given the deed to the property after making only a small number of payments. When considering this type of purchase, make sure that you are purchasing from a reputable company specializing in the sale of land with no credit requirements and take time to thoroughly examine all documentation provided to make sure you understand your obligations for the purchase. For more information, contact companies like SWE Homes.