Tips on buying a rent-to-own
How This Works For Tenant/Buyers
Are you fed up with throwing away your hard earned money every month on rent? Do you want to put your family into a beautiful place they can call home? What's stopping you? Credit? Past Issues? With a rent to own property, you don't have to face the immediate scrutiny that lenders will put you through, even if you have what they think are problems.
Benefits of rent to own a home through a lease purchase:
- Low option consideration (less down payment).
- Many past credit problems can be corrected or deleted from your report while living in the home.
- Less up front qualifying restrictions.
- Purchase price is agreed upon and locked in ahead of time.
- You are able to live in the house, check out the area and house thoroughly before purchasing the house.
- Appreciation of property value works in your favor since the purchase price has been agreed upon prior to taking possession of the property. Any build of equity between move in date and purchase date is yours when you exercise your purchase option!
- Option fee is fully credited to toward the purchase of the house.
- Part of the rent payment every month may credited toward the purchase price, which can also be used to offset closing costs.
- You may be able to negotiate work for equity with the seller.
- Live in the home while your income becomes documentable (self-employed).
- We work directly with loan officers to assist you in obtaining permanent financing.
Sounds great! But what are the next steps?
The first step is to position your application for rent to own, to be as desirable as possible for any landlord/seller. The cornerstone to your application is your credit score. If your score is below minimum guidelines (640 for most loans and 620 for FHA) you will need to develop a documentable plan to raise your score. The person who you are working with on obtaining your property has an affiliate relationship with www.mycreditteam.com. They are experts in the credit restoration and enhancement industry who not only will work on your behalf to raise your score but will also keep the landlord/seller up to date as to the progress of your credit enhancement process.
If you have not enrolled in credit restoration and your score is below 640 your application for a rent to own property may not be taken seriously since there is no plan in place to position your credit score to be in the range acceptable for a mortgage loan.
What is required to qualify for a lease purchase property?
Great question!! When you apply for a lease purchase property, there are some main items that are being reviewed and that are being looked for:
- A Down payment - amount to be agreed upon by you and the landlord/seller
- Debt to Income Ratio Analysis - We will make certain the lease/mortgage payments are within your budget and meet underwriting guidelines. For this step you will need to provide your income documentation
- Credit report score to be above minimum underwriting standards or you must be enrolled in credit restoration / enhancement with My Credit Team.
The total amount required for move in is the Option Fee plus the first month's payment. It's that easy! The first step to accomplishing your goal of home ownership begins by talking with Screen The Tenant. They will be calling you 24 - 48 hours after the completion of your on-line application at www.screenthetenant.com.
Free audio education
HOW TO GET YOUR CREDIT READY TO BUY A HOME?
Repairing Credit the Right Way, with Paul Ritter & Brian O'Neill - Real Estate Investor
Repairing Credit the Right Way, with Paul Ritter & Brian O'Neill - Real Estate Investor
(Audio file) In this episode of Not Just A Transaction, hosts Nick and Zachary speak with special guest and credit repair expert Paul Ritter. Paul discusses how he works with tenant buyers to get credit issues straightened out so that they can qualify for a loan at the end of the lease period, and he explains what huge differences set his services apart from other competitors that aren’t as invested in the success of the buyers.
What you’ll learn:
- How My Credit Team has worked closely with the Pre Property Solutions team for years, and how they specialize in credit repair and helping people get to the finish line
- How Zachary himself has used My Credit Team’s credit repair services and can attest to how effective they are
- Why My Credit Team’s credit repair process has been refined and simplified with the intent to take the stress off
- Why your debt-to-income ratio is the single most important factor in determining if you will be able to get to the finish line
- How 85% of the people My Credit Team work with successfully buy their home, and how as much as 12% fail to make it to the finish line because they stop following the process
- Why a higher down payment has a direct effect on how likely you are to get approved for your purchase at the end of the rental period
- Why working with a credit repair service that is aggressive and that works with the timeframe you have in mind is crucial
- Why your debt-to-income ratio and the quality of credit are the two primary factors that need to be worked on to get you into a lease-option home
Resources:
- Set up an appointment with My Credit Team: Text APPT to (724) 221-3111
- My Credit Team Website: www.mycreditteam.com
- Screen The Tenant Website: www.screenthetenant.com
- My Credit Team Facebook: www.facebook.com/mycreditteam/
- Screen The Tenant Facebook: www.facebook.com/screenthetenant/
Repairing Credit the Right Way, with Paul Ritter & Brian O'Neill - Real Estate Investor
Repairing Credit the Right Way, with Paul Ritter & Brian O'Neill - Real Estate Investor
Repairing Credit the Right Way, with Paul Ritter & Brian O'Neill - Real Estate Investor
(Audio file) What you’ll learn in this episode:
- How Paul and his team at My Credit Team help buyers enhance or repair their credit to prepare them to purchase a home
- Why many people wrongly believe that paying off an old account removes it from their credit report, when paying off an old debt can actually cause your score to go down
- Paul explains what your debt-to-income ratio (DTI) is, and why a poor DTI is the biggest reason people are rejected for mortgages
- Why working with a credit repair company can help you quickly find and correct problems on your report, and why it’s important to find a company you can trust
- What steps self-employed people can take to build credit, and why it’s advisable to get a credit card with at least a $1500 credit limit
- Why it’s important to use your card at least once every six months, and why a small balance on the card can be helpful to maintain a good relationship with the issuer
- Why you shouldn’t close your older cards/accounts, and why a trusted credit advisor can help you determine which accounts to keep open
- Why paying off an installment debt such as a car payment won’t raise your score, and why instead it’s important to make regular on-time payments
- Why free memberships with FreeCreditReport.com and Credit Karma can give you valuable insights into your credit situation
- Why seeking help to repair your credit will dramatically speed up and simplify the process and can more than pay for itself
Resources:
- Text APPT to (877) 952-7979 to set up a free analysis from Paul
- Telephone: (412) 242-2733
- Website: https://mycreditteam.com/
- LinkedIn: www.linkedin.com/in/paul-ritter-951b8b28/
- Facebook: www.facebook.com/mycreditteam
- (Audio file)
WHAT YOU NEED TO KNOW BEFORE LOOKING AT RENT-TO-OWN HOMES!
Repairing Credit the Right Way, with Paul Ritter & Brian O'Neill - Real Estate Investor
WHAT YOU NEED TO KNOW BEFORE LOOKING AT RENT-TO-OWN HOMES!
(Audio file) Gain insight from a renown Real Estate Investor Jeffrey Richman as to how to structure a rent-to-own transaction.