1. Borrow or ask for a gift from relatives. After you have financed house, you can usually go and take out a 2nd or 3rd mortgage up to full value of your house, and then you could repay relatives. Keep in mind that if you intend money to be as a loan only from relatives, you would need to disclose that to lender before you close. Lenders usually have regulations about where down payment is coming from and if you are not honest, it could be considered defrauding a lender.

2. There are down payment assistance programs like Neighborhood Gold or Nehemiah program. These programs basically aid seller in helping you with a down payment. Receiving a down payment from seller of property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.

3. You could cash out a 401K or another investment and like in first example, repay yourself with a 2nd or 3rd mortgage after loan has closed.

If you do run into trouble, call billing company and make arrangements before they report you to credit reporting agencies. Billing companies want to see their money and are often willing work out an arrangement.

Shop Around

When you are ready to look for a mortgage, compare prices online. Sub prime lenders offer loans to people with bad credit, but they don’t all charge same rate. Make sure lending company you pick offers competitive rates and fees. Mortgage websites now offer quotes from several companies, so you can pick best financing offer.

Asking for quotes online doesn’t commit you to accepting an offer. So if you are hesitant about taking on a mortgage, online websites can give you an idea of what to expect.

Mortgage websites can also process your loan application online faster than a traditional mortgage office. Once you have submitted needed information online, paperwork will be sent out to you for final approval and your signature.