Credit Guide for Owner-Financing Buyers

What credit score do you need?

Owner financing is more flexible than a bank mortgage. We look at your full financial picture — income stability, payment history, down payment, and willingness to honor the Land Installment Contract — not just a single FICO number.

We commonly work with buyers in the 580–680 FICO range, but every application is considered individually. A lower score is not an automatic disqualifier; active defaults, recent evictions, or unresolved judgments are the bigger red flags.

How to check your credit for free

Federal law (the Fair Credit Reporting Act) guarantees one free credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — every 12 months. The only authorized source is:

AnnualCreditReport.com — the official federally mandated site, operated jointly by the three bureaus.

Watch out: many sites with "free credit" in the name are actually paid subscription products that charge your card after a trial. AnnualCreditReport.com never asks for a credit card.

Your free report includes your history and accounts but not your numeric score. Many banks and credit cards now show your FICO or VantageScore for free inside their apps — check there first before paying for a score.

Reading your credit report

A credit report typically has four parts:

• Personal information — name, addresses, employers. Errors here are common and worth fixing.
• Accounts — credit cards, loans, mortgages, with balances and payment history for the last 7 years.
• Inquiries — every time someone pulled your credit. "Hard" inquiries (applications) can ding your score for ~12 months.
• Public records — bankruptcies and certain judgments.

Read every line. Common errors include accounts that aren't yours, payments marked late that were on time, accounts still showing past the 7-year reporting window, and duplicate collection entries.

The CFPB publishes a plain-English guide to reading your report: consumerfinance.gov/consumer-tools/credit-reports-and-scores.

Disputing errors on your report

The FCRA gives you the right to dispute anything you believe is inaccurate. The bureau must investigate within 30 days and remove or correct unverifiable items.

The CFPB publishes ready-to-use sample dispute letters:

CFPB sample dispute letters

Send disputes by certified mail so you have proof of delivery. Dispute with both the credit bureau and the company that reported the information (the "furnisher") — they have separate obligations under the FCRA.

Building credit

The biggest two factors in your score, by a wide margin:

1. Pay on time, every time — payment history is roughly 35% of a FICO score. A single 30-day late payment can drop your score 60–100 points.
2. Keep utilization low — the balance on your revolving accounts (credit cards) should stay below 30% of your limit, ideally below 10%. Utilization is ~30% of your score and recovers fast once you pay down balances.

Other practical steps:

• Don't close old accounts — length of credit history helps you.
• Avoid clustering hard inquiries. Rate-shop for a mortgage or auto loan inside a 14-day window and it counts as one inquiry.
• If you have thin or damaged credit, a secured credit card (where you put down a refundable deposit) is the fastest way to start building. Pay the balance in full each month.
• Credit-builder loans from a local credit union are another starter tool — you pay into a small "loan" that's released to you at the end, and on-time payments are reported monthly.

Your rights

Three federal laws protect you. In plain English:

Equal Credit Opportunity Act (ECOA)

Creditors cannot discriminate against you based on race, color, religion, national origin, sex, marital status, age, or because any of your income comes from public assistance. If you're denied credit, the lender must tell you why. Learn more: CFPB on ECOA.

Fair Credit Reporting Act (FCRA)

You have the right to accurate credit reports, to know what's in your file, to dispute errors, and to have outdated information removed. Learn more: CFPB on FCRA.

Fair Debt Collection Practices Act (FDCPA)

Debt collectors cannot harass, lie, or threaten you. They can't call before 8am or after 9pm in your time zone, can't contact you at work after you tell them to stop, and must stop contacting you if you send a written cease-contact request. Learn more: FTC on FDCPA.

What EXPX Estates looks at

When we review an owner-financing application, these are the factors that actually weigh in — in plain order of importance:

• Stable income or a clear income path. W-2, 1099, self-employed — all fine. What matters is that you can cover the payment, taxes, and insurance each month.
• Down payment. Skin in the game. Higher down → easier approval and better terms.
• Recent payment history. No active collections, no unresolved housing judgments, no open defaults. Old blemishes that you've since recovered from are fine.
• Ability to cover property taxes and insurance. These are your responsibility under a Land Installment Contract; show you can.
• Good-faith willingness to honor the contract. This is owner financing, not a bank loan — trust matters both ways.

We do not use score-only cutoffs, and we comply with the Equal Credit Opportunity Act in every decision.

Ready to start?

If you've read this far, you're already doing the work. When you're ready to see where you stand with us, the application takes about 10 minutes.

Apply Now   or email attilaaltdorfer@gmail.com with questions.