Buying Property Tips: Purchase Now and Finance Later ...
You can use your cash to help you reestablish credit. If a lender will give you financing, but it would be expensive, you may be able to reduce the costs by purchasing with a partner who has good credit. This way, you can at least obtain financing initially.
As your payments are made in a timely fashion, you continue to repair your credit, until you can eventually qualify for financing on your own. You can arrange in advance to either buy out your partner if you really want to keep the property, or you can sell the property and use your share of the proceeds as a down payment on a different property.
Depending on the reason for the tarnished credit, a purchaser in Category 4 may encounter difficulty obtaining a loan, and may end up paying a very high interest rate and several points in order for a loan to be approved. While the increased loan costs are understandable in order for you to obtain the loan, one option is to find a lender that will agree? in writing?to renegotiate a lower rate of interest after you have proven yourself by making timely payments for a pre-agreed period of time.
If you are unable to find a lender to finance property for you, another option is to buy the foreclosure with cash and obtain financing down the road, after you have reestablished credit in other ways (i.e., a secured credit card). Consult a credit counselor who can help you define a plan of action to repair your credit in a time frame that is compatible with your investing goals.
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Source: http://www.savortricities.com/2012/07/buying-property-tips-purchase-now-and-finance-later/
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