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Home buying for the credit-impaired

(ran HH, HP editions)

No Credit Required, by Ray Mungo and Robert H. Yamaguchi (Signet Books-Penguin Group, New York), 1993, 180 pages, $4.50.

"Even if you can't get a Visa or MasterCharge card, have been bankrupt, just got out of jail, or are living on unemployment or disability checks, you can still own your own home and stop paying rent." That sentence from chapter one summarizes this excellent new book which is about how to buy a home without qualifying for a new mortgage

Authors Ray Mungo and Robert H. Yamaguchi use many real-life examples to illustrate how they and other buyers have bought homes without having to meet the often unreasonable requirements of mortgage lenders. To illustrate, they explain how to make written offers to sellers for convincing them to carry back the first or second mortgage by emphasizing how much the seller will profit by financing the sale.

Virtually every method of buying a home without qualifying for a new mortgage is explained. The authors explain both the general methods and the details, such as how to take over existing FHA and VA mortgages when buying a home. But they also emphasize why home buyers should be wary and not buy homes with significant defects just because that home can be easily financed.

Chapter titles include: The Government No-Qualifying Assumption; Home, Sweet, No-Qualifying Home; Everything About the FHA and More; Owner Will Carry; Lease with Option (my favorite chapter); The 30/70 Rule; Adverse Possession; Equity Sharing; Foreclosure to You; Quit Claim; Buying from the Old, Dying and Dead; The Unwanted, the Desperate, and the Ugly; Go for It; Credit-Free and Home for the Holidays and Buy It, You'll Like It.

This up-beat, inspiring book encourages readers to buy a home even if they have bad credit or other perceived detriments. The dozens of examples show how other home buyers, including the authors, have bought homes even though they are less than ideally qualified. On my scale of one to 10, this excellent book rates a 10.

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