When you start searching for a rent to own home with poor credit; first investigate your credit score. If your rating is poor, there are a number of specific things you can do as good practice to improve and build both your score and lenders' attitude towards you while applying for a home loan. Sign Up On Your Contract: To get any credit for rental homes, you must get it on the contract. If it's not on the contract, it's unlikely you'll get any credit. Pay Your Bills On Time: Always pay your … [Read more...]
Archives for October 2011
Difference Between Rent to Own and Owner Financing
In a rent to own or ‘lease purchase’, the buyer has the option to purchase the property at the end of the rental period. So, the buyer has the legal right to purchase the property for a fixed period of time, but is not obligated to purchase the house. Important features of the rent to own transaction: Buyer pays an upfront option fee, which is non-refundable. The buyer buys the ‘Right’ but not the ‘obligation’ to purchase the property in future. Option fee is credited toward the … [Read more...]
