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4 Creative Ways to Finance Your Next Home

Getting financing for a home can be difficult, especially if you have bad credit. However, there are ways to get around the traditional methods of financing your home, and there is no reason to let bad credit or the inability to make the necessary down payment stop you from moving into your dream home.


The following are four creative ways to finance your next home, and they have all been proven successful and have worked for many others before you. By fully understanding all the options you have available to you when it comes to financing, you can be sure to not let any obstacles hold you back from buying your next home.

Rent to Own

Rent to own is a wonderful solution for those who have bad credit that does not allow them to receive financing for their next home from a bank to still buy a home they can love and call their own.

The premise behind a rent to own financing method is to rent for a period of time while you improve your credit score and overall financial situation. After you rent for a specified amount of time, you then have the option to buy the home from the tenant, who at that point likely trusts you enough to sell you the home.

While it may not be an ideal solution for those who want to buy now, it is a good way to work towards owning your home.

Seller Financing

A seller financing deal is exactly what it sounds like. Instead of getting financing for a home from a bank or other institution, the seller does the financing. While finding a seller financing home opportunity may take an in-depth search, it is a great way to find someone who is willing to work with a lower credit score.

The main drawback to seller financing is that the seller is likely not trusting, especially if the buyer has a low credit score, so they may charge higher interest rates or call for a much larger down payment. If you can find the right seller, however, it is a great opportunity to finance your next home.

Contract for Deed

A contract for deed financing is another unique way to finance a home with poor credit. The idea behind a contract for deed is that the seller keeps the title for the property until the entire mortgage has been covered by the buyer.

While it may not be the most ideal solution for home buyers, it is a creative way to get around not having a credit score that allows for home financing with a bank, and it may even be a way to score a lower interest rate.

Retirement Account

Tapping into your retirement account is a great way to find a down payment on a home when you are strapped for extra cash. While it is best to avoid doing so, using your retirement fund is a fantastic opportunity to gather enough to purchase your next home.

Whether you borrow from your IRA or 401(k), looking into your retirement account to make a purchase happen is a very reliable solution for many.

EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.

EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129

(615) 896-5656

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