Question:
“I got turned down for a mortgage, but I know I can afford a payment. Is there a way to get a loan without qualifying?”
Answer:
For better or worse, the crazy Wild West lending rules of 2005 are long gone.
Back then, we joked that if you could fog a mirror, you could get a home loan. And we were barely exaggerating!
So your odds are slim, but I’ll share with you the unlikely sources:
- A “hard money” lender. Despite the name, they don’t break your legs if you don’t pay them (at least as far as I know). But they charge an arm and a leg and a big down payment.
- Ask the seller to “carry the mortgage,” i.e. make you the loan. If a seller owns a home with no mortgage, they can act as the bank and take payments. But few sellers will do this.
- Borrow from a rich relative or friend. One of my clients had an acquaintance “carry the mortgage” at 1-2% over the going rate. But he got the home.
Even though I’m telling you three ways to do this, they are all long shots.
Good luck!
