There are many reasons why you might not qualify for a standard mortgage. For one, your credit score may be too low. You might not even have a credit score if you haven’t managed to build one up yet. Fortunately, you can still get your home through what is known as a purchase loan. Purchase loans — also sometimes referred to as purchase money loans — are commonly used by sellers to help their buyers afford the property for sale. In these scenarios, the purchase loan is referred to by the term owner financing since the owner of the property is taking out a loan to make it easier for someone to buy it.
Purchase loans are especially useful in California due to the high property prices that seem to rise consistently with every passing year. It’s very difficult to buy a house in cash with the prices in this state so purchase loans are one of the best ways to get a home even with low credit scores. That’s all for now but we hoped that our post provided the information that you need to make an informed consumer decision. Happy investing, everyone!