No Credit Check Home Loans: Myth or Masterstroke?
There is a lot of conjecture to the no credit check home loans, in the conventional sense of the phrase it technically doesn’t exist. But there are some circumstances by which you can find one and not all of these “no credit check” home loans are a good idea. I have seen a few end downright tragically, and cause untold damage not only to a person’s credit score but also their personal life and health. Knowing the difference between the facts and the fictions will hopefully keep you on the right side of the fence, as well as keeping you from losing your shirt in the process.
Knowing What No Credit Check Home Loan Really Means
If you are talking to the bank, it means simply put that you are putting more than twenty percent down on the property and they will come and clean your clock financially should you default. And that is really about it, not much small print or areas of law to fudge, if you have a house “epic fail” they come and get you, and you are eating beans and weenies because of your no credit check home loan, so if you think you may in any way not be able to do that house don’t even try it, they will come and get you, game over, bank wins.
Home loans with no credit check also means owner financing, and this is where things get fuzzy. No credit check home equity loans can either be a really great idea, or it can screw you harder than a hockey team would. Let me first explain that my father lost our first home this way, and it literally ruined his life and health for over ten years. He is still unable to discuss it and now that he is in his fifties, and approaching retirement, the damage that did to his financial health is even more apparent. The failure on his part was that the home was only owner financed for seven years, just enough time for the old man to make a bunch of repairs and put a good chunk of money down on the place. His mistake was falling in love with the home, and having to have it at any cost.
The bottom line with no credit check home loans is either make the owner hold the ENTIRE contract, or do not buy the house because it is not likely you will be able to finance that house in seven years if you cannot finance it today. Too many people make the mistakes dad did, and go into it thinking seven years is a long time away and things will be different when the time comes to refinance the house. They are all wrong, and it makes my stomach turn to think if all the poor sots who have been sucked into this trap. It is extremely difficult to prove this kind of fraud, but that does not make it fraud any less and that is of no consolation to the people who have lost everything to these schemes.