How to Buy a House In Florida With Bad Credit?

Bad credit Florida mortgage lenders can be hard to locate. But for homebuyers who have a solid income with money saved, there is a chance if you can prove 12 months of timely payment history. Our bad credit Florida mortgage lenders will buy you the Florida home of your choice if you can provide proof of good payment history. We even have bad credit Florida mortgage lenders that will buy you a home after a bankruptcy.

Rent To Own Florida Eligibility

Rent To Own Florida Mortgage

• Primary Residence for Homebuyer(s) Only!
• Purchase – No Refinance Options.
• Up to 96.5% LTV = {3.5% Down with 580+ Credit scores.}
• Up to 90% LTV    ={10% down with 500+ Credit scores.} 
• Alt Doc, No Tax Return, Full Doc, Bank Statements, 1099s, and Alt Income options.
• Rent-to-own approvals case-by-case basis.
• Note – This program is designed for you to succeed in the home purchase. We cannot prove ability, willingness to repay, then you will not qualify.

What Are Your Reasons For Bad Credit?

Foreclosure – Bankruptcy – Divorce – 30,60,90 day late payments – Claim of lien  – Lis Pendens  – Code violations  – Tax Lien – Department Of Revenue Warrant –Final Judgment –Deinquent HOA –

Waiting Periods For Bad Credit Issues

What Steps Should I Take With Bad Credit?

Buying a house with bad credit can be easier than you think. As long as you can show good payment history for the most recent 12 months, then you should qualify regardless of your credit score. You can even qualify to buy a house after a previous Chapter 7-  Chapter 13 bankruptcy after 12 months of timely payment history. 

Step 1: Check Your Credit Score

Before you apply with a Florida bad credit mortgage lender, go to annualcreditreport.com and find out what collections you can settle for deletion. You can contact all collections and make a settlement for a deletion agreement. This is the quickest way to increase your score. Remember, keep the balances on your credit cards as low as possible. Pay all your bills on time and settle for deletion all accounts on your credit report. 

Step 2: Rent-To-Own Florida Mortgage

When a Homebuyer does not qualify for a traditional mortgage, the rent-to-own Florida mortgage program offers an opportunity to move into permanent housing now and ultimately enter homeownership. The Florida bad credit mortgage lender buys the home of your choice. You can lock in your price now while you rent the home from the lender until you qualify for standard Florida mortgage financing. That way, a small portion of your payment goes towards the home, and you don’t have to keep moving. 

Rent-to-Own Advantages

1.  The Homebuyer(s) move into the property and begin their journey toward owning the home!
2. The option purchase price reduces with each monthly payment made by the Homebuyer(s).
3. All appreciation acquired from the date of closing until the Homebuyer(s) purchase the property belongs to the
   Homebuyer(s).
4. At any time, the Homebuyer(s) can sell the home, purchase the property from the FHA-eligible government entity, or
   Assume the existing FHA loan on the property.

Rent To Own Steps

Step 1: The borrower submits a fully completed application to the Florida mortgage lender for approval.
• The property address must be identified in the portal if a property has been selected by the Homebuyer(s), otherwise
The property address may be identified as “TBD”.
• Qualifying documentation must be uploaded to the loan in the portal. Required documentation includes, but is not
limited to income and assets, as well as any supporting credit history documentation (housing, alternative tradelines,
credit event details, etc.), identification, LOEs, etc.
• Note: A review will not be completed until all qualifying documentation is received and confirmed.
Step 2: Once the Homebuyer(s) have selected a property of their choice, the Homebuyer(s) enter into a purchase agreement with the property seller for the selected property.
• The property must meet the DreamBuilder eligibility and guideline requirements.
• The “buyer” portion of the contract MUST identify the Homebuyer’s name(s), in addition to “and/or assigns”.
• The Homebuyer(s) MUST execute the Assignment Addendum to Purchase & Sale Agreement to transfer the contract to the FHA eligible government entity (the entity purchasing the property on behalf of the Homebuyer(s)).
• Broker to provide the executed contract with all addenda (including Seller’s Disclosure) to the bad credit mortgage lender.
Step 3: The Homebuyer’s name will be retained within the portal as the Homebuyer/Tenant, and the borrower on the transaction will be transitioned to the FHA-eligible government entity.
• The FHA investment purchase will be identified within your portal pipeline under borrower “Tule River Homebuyer
Earned Equity Agency”.
Step 4: The subject property appraisal must be ordered, completed, then reviewed and approved to guideline requirements. All conditions related to the property must be addressed and satisfied.
• Open Mortgage Wholesale will order the appraisal on behalf of the Broker/Homebuyer(s). The Homebuyer(s) are
responsible for paying for the appraisal.
Step 5: The Homebuyer(s) execute the Homeownership Agreement and remit all funds for closing to the title company.
Step 6: The purchase transaction is closed at an approved title company.
Step 7: The Homebuyer(s) move into the property and begin their journey toward owning the home!
• The option purchase price reduces with each monthly payment made by the Homebuyer(s).
• All appreciation acquired from the date of closing until the Homebuyer(s) purchases the property belongs to the
Homebuyer(s).
• At any time, the Homebuyer(s) can sell the home, purchase the property from the FHA-eligible government entity, or
Assume the existing FHA loan on the property.

Step 3: Save More and/or Wait Longer

If you don’t qualify for to own program now, you either need more money down or more proof of timely payment history. Depending on how bad your situation was, you may need to wait a few more months and or save more money fora  down payment.

Property Types Include:

• Single-family home –
• Townhouse – Florida Rent To Own  
• Villa – Florida Rent To Own
• Manufactured home – Rent to Own