Rent to Own May Be Your Answer
Rent to own? If you are looking to own a home quickly, rent to own is your best option the Experts say. Why? it really makes it easier than owning a home the traditional way. Read on to learn how rent to own takes away from the financial stress.
If you’ve ever applied for a mortgage loan, you know how important your three-digit credit score is. This score acts as a numerical summation of how responsible you’ve been as a consumer. If your score is low, you’ll struggle to borrow money, get affordable auto insurance, and, in many cases, land your dream job. Fortunately, there is an effective way to work around bad credit scores and still live in your own home: Search the area’s rent to own homes.
By entering into an agreement, you’ll gain the opportunity to live in a house without needing a high credit score to obtain mortgage financing. And while you’re living in this home, you can take the steps on your own to rebuild your credit. When your scores are then high enough, you can apply for a mortgage loan with far greater confidence.
The market for rent to own homes is booming today. That’s because of the residential housing crash. During the housing boom years, sellers were able to move their homes at asking price; they often sold their homes within days of putting them on the market.
A Busy Rent to Own Market
This has changed. Today, sellers are struggling to obtain any good offers. Many of their homes have plummeted in value since they purchased them. In fact, research firm First American CoreLogic estimates that more than 22 percent of homeowners today are underwater, meaning that they owe more on their mortgage loans than what their homes are worth.
Many of these homeowners have decided to offer their homes on a rent to own basis today rather than sell them for a loss. Under such an arrangement, you’d sign what looks like a typical apartment lease. But after a set period of time, often three years, you’d have the chance to make an offer to buy the house that you are renting. While you are paying rent, your landlord will withhold a portion of your monthly payment that will be used as a down payment should you decide to purchase the house.
Rent to own homes give you the opportunity to decide whether the life of a homeowner is the right one for you. You might discover that you hate weeding the backyard or that you cringe whenever it’s time to shovel the walk. If that’s the case, you can happily remain a renter.
Avoiding the Credit Score Curse
You also get the opportunity to move into a house without needing the high credit score that most lenders require today. If your score is under 620, for a conventional loan, or 580 for a loan backed by the Federal Housing Administration, you’ll struggle to obtain mortgage financing from a conventional lender. But when you enter an agreement, your credit scores don’t matter.
While you’re living in your rent to own home, you can then take the simple steps necessary to improve your credit scores like:
• paying your bills on time every month without missing any payments while cutting down on your credit card debt
No Secret to Credit Repair
That sounds simple, but these really are the secrets to gradually improving your credit scores; just don’t expect your scores to jump overnight. There is no way to boost your credit scores by a significant amount in a short period of time. Rebuilding your credit requires patience and commitment on your part.
Rent to own homes represent a great opportunity for credit-challenged people, including you. So don’t fret about those low credit scores and how they’re keeping you from the life of a homeowner. Instead, seek out your local batch of rent to own homes; these homes can get you started on the path to homeownership.
HomeBuyersAssistant.com is a national company with a dedication to helping people achieve their goal of owning a home regardless of their current credit situation. Our Rent to Own Homes programs are available for anyone who has a serious commitment to improving their situation. We can help you rent to own a home anywhere in the USA, even if you’ve been denied in the past. You can go from renting to owning the home of your dreams sooner than you ever thought possible! Happy
rent to own.
Article Source: Kyle_Sugerak