I know there are a number of members on here that deal with real estate so I figure I would ask.
I understand that even p2p lending companies ie lendingtree require a min credit score of 620. Is there anything local or any company you have heard of through which 2 people can come to a loan agreement without the use of credit scores and different algorithms but on a pure person to person basis ie over coffee, multiple meets, where collateral can play a big role as well? All of this documented and legally binding.
After coming to America, growing up I made a ton of poor decisions that did not do any good for my credit score, history and the general American culture of credit playing a huge role. I was taught more of the Eastern European culture of living where banks and credit doesn’t really play a role, in Ukraine and Belarus, the apr for mortgage is in the 25%+ so nobody wants to deal with it.
So when it comes down to it, my credit is crap and most of my cash always went to things like tools , appliances, cars etc. I want to buy a piece of land that is being sold for $8900 that is in a perfect location not far from where I live. I want to buy it before somebody else does of course.
I am currently trying to get my credit score up with a secured credit card but I imagine that will take a year at least.
What are my options. If my only option is to wait and try to increase credit score, is there a reputable local company or bank that can help guide through that? I mean something personable and not the regular BoA agent trying to push a loan. I’ve done a lot of reading and the answer there is all about the credit score.
I guess I’m looking for something that is a bit more “real” and negotiated that looks at the real situation rather than arbitrary numbers. I know plenty of people whose credit scores are in the 700’s and can get any credit they wish, but if they were to lose their jobs/injury, they would end up on the street.
Whatever the case, the ultimate goal is a mortgage to build a home or buy one depending on the land situation, in a couple years. By that time I have to get my credit score up either way.
Any advice would be much appreciated.