how to rent to own a house with bad credit – Rent To Own
Homes with bad credit
how to rent to own a house with bad credit
As a landlord & real estate investor, I often get calls from potential tenants who say ” I want to rent to own a home rather than just pay rent to a landlord:” My first question is always: “WHY? Renting to Own a Home is always more expensive than just renting or sometimes even more than getting a mortgage!” Although there are many more good reasons to want to Rent to Own a Home (RTOH), here are what I think are 5 very good reasons.
1. “I took some bad tax advice a few years ago so now my tax account is in arrears and no bank will give me a mortgage until I clear up my tax arrears but I still want to work towards owning a home in the future.”
2. “I recently filed for divorce but I don’t want to acquire any new assets before the divorce settles but I still want to work towards owning a home in the future.”
3. “I recently had to file for bankruptcy & while I wait to be discharged, I still want to work towards owning a home in the future.”
4. “I lost my job and got behind on paying my bills & credit cards so my credit score has dropped below the level where a bank will give me a mortgage but I still want to work towards owning a home in the future.”
5. “I just started a new business but don’t have the 2 or 3 yrs of history to show to the banks but I have good cash-flow & I want to work towards owning a home in the future.”
All five reasons noted above are legitimate & common occurrences in today’s slower economic times. Now my second question is: “WHAT HAVE YOU DONE TO START FINDING A SOLUTION?”
If the answer is “NOTHING” then expect to have to complete more steps in your process to get to the place where you can be considered a “Qualified Tenant Applicant.” All Tenant Applicants are expected to complete an Application to Rent, submit to a recent credit report & current police check verification.
If you have done nothing the first thing you will need to do is to submit a complete budget showing all income & expenses for your household. You will also need to show a list of all the things that you own that have value & the dollar values as well as a list of all your current bills, debts & credit cards. You may need to submit this to a mortgage broker with whom you will work to improve your credit situation over the course of the next 1 to 5 yrs. Or to the potential landlord who must decide if he or she wants to work with you for the next 1 to 5 yrs.
If your reason for wanting to Rent to Own a Home (RTOH) is one of the 5 listed above and you have gathered together your financial information, you are a good candidate for Renting to Own a Home. Are you ready to take the step from renting to owning a home?
rent to own homes
rent to own houses
homes rent to own
houses rent to own
rent to own homes free listings
rent to own homes in texas
rent to own homes in md
rent to own homes in ny
rent to own homes in nj
rent to own homes in california
rent to own homes in las vegas
rent to own homes in Florida
rent to own homes in chicago
rent to own homes boston