Are you dreaming of owning your own home but have less than perfect credit? Our Rent-To-Own (Lease Purchase) program can get you on that path to home ownership.
There are many programs to help you buy a house with no down payment money if your credit score is a 640 or better. If you are a veteran, than you only need a 620 credit score to get a no down payment loan. So this program may not be the best for you depending on your situation. This program is primarily for people that have a credit score less than a 620 but Absolutely have to get in to a home for whatever reason and don’t want to do a normal rental. Read on if you want to learn more about our Rent To Own Program Details.
If you can afford a reasonable 3.5% down payment and fair market monthly rent payments, you can easily participate in our powerful Rent-To-Own program. Why 3.5% down?…because most people get FHA loans and 3.5% is the minimum FHA down payment requirement, so in effect that is taken care of upfront. It is also sufficient enough to structure the Rent-To-Own deal to make it attractive enough for a seller and/or listing agent.
Perhaps one of these situations applies to you: self-employed, short job history, relocated and didn’t have a job lined up…but you have cash, past or present financial problems. These problems can be overcome, especially if you have cash available to use as an option fee (noted as down payment) and even pay some months in advance rent. However, if you have more than a couple collections totaling more than a $1000, it’s likely not looking good for you to obtain a Rent-To-Own.
Our partnering direct lenders will give you a Free analysis and guidance on how you can rebuild your credit based on you doing certain actionable items! If you want to proceed with us in pursing the Rent-To-Own program, we will require that you do the Free analysis with your lender of choice or our partnering direct lender. We need to do this so you can get a good projection of when you might be able to qualify for a traditional mortgage. We also need to speak on your behalf to sellers and listing agents as to your situation if we are to structure a Rent-To-Own deal.
We have seller paid closing costs (seller concessions) built in to the deal and noted in the contract that are projected to be enough so the tenant-buyer does not have to come to closing with any money. So in effect with the down payment, the front-end is covered, and with the closing costs built in, the back-end is covered.
You just have to work on everything in between and it is your sole responsibility. You have to get the job, make enough income, and build up your credit score all in enough time as outlined in the contract to follow through and obtain your mortgage before the contract term expires, or you lose the option fee (down payment) and you have to leave the property. If the owner is lenient and reasonable they may work out something with you, but there are no guarantees in that. You have to make sure you leave enough time in the contract, 1 year, 2 years, or whatever to allow yourself enough time to follow through.
We will ensure that the owner of the home you are Lease Purchasing from is the actual owner on record. We will make sure that their mortgage is current and they aren’t behind on payments prior to you signing a deal.
The fastest way to get into your Rent-To-Own home is to call us or by going to our Contact Us link. We would be glad to give you more information and answer any questions you may have.
Note: If You have any collections, those will All need to be paid in full or removed prior to getting a loan. No lender will approve a loan if a buyer has any collections. If you only have a $1000 worth of collections then it may be manageable for you to pay those off in a few months with enough time prior to the end of your Rent To Own term.
If you have a significant amount of collections then it is likely that a Rent To Own is not for you. It would be recommended to talk to a Bankruptcy attorney and see if that might be a better path for you to get a fresh start. Once you have a clear projection of when obtaining a Traditional loan is feasible, then pursuing a Rent To Own would make sense at that time.