Home >> Write >> Real Estate >> Buying Real Estate >> Types of Property >> Non-qualifying Homes
Have you heard the news these days that real estate investment is one of the most secure financial investments you can make these days? While the real estate bubble continues to roll on without a hint of a burst, more and more individuals are becoming bolder with their money. After all, the Real Estate market is full of stories about homeowners who bought low and sold high. Any real estate agent or realtor will have dozens of stories of these cases. However, for many individuals who are interested in Real Estate Investing, they find they just don’t have the financial qualifications. However, don’t fret – as this is not the end of the story.
For the most part, houses and other forms of property are great investments. However, one of the qualifications of being a homeowner is having a secure financial history. Banks and other real estate lenders are weary of giving real estate loans to individuals who do not have excellent credit. Still it is not impossible to purchase a home, especially if you start looking for non-qualifying homes for sale.Non qualifying homes refer to properties where a homeowner is able to assume the pre-existing house loans from the previous owner without having to go through the financial qualifying process. This scenario usually occurs when the previous homeowner is unable to pay off their home equity loans and therefore default on their loans. In many cases of homes for sale by owner, they are selling non-qualifying homes. This means that the new homebuyer purchase the housing equity from the home seller and are then responsible for house loan payments.
While this is a scenario where a homeowner is able make a great real estate investment by buying low, it is also something to be weary about. It is important that you have some kind of financial support or else you may find yourself the seller of a non-qualifying home. Additionally, it is important that you are able to trust the homeseller, particularly in cases where you are buying a house for sale by owner. Although most of these cases are free of problems, there are some instances where homeowners have found themselves in a housing scam. Be smart and do your homework and you should be fine.
In some instances non-qualifying homes refer to housing loans in which a homeowner is able to qualify for a housing loan without having to go through the qualification process. While this is great because it frees you from the burden of having to qualify for a loan, ask yourself whether your lender is reliable. Again this can also be a scam. Additionally, the term Non-Qualifying Home is used to describe those houses that fail to qualify under housing standards in its region.