Link Directory
Rent to Own Homes
Provide buyers-tenants and sellers-landlords additional options during questionable times for the market or the individual parties. The general agreement allows for a potential buyer, who may not have the capital to buy the house out-right or the credit to get a loan, to pay a deposit up-front, traditional rent and a rent premium and live in desired home immediately.
The deposit on a rent-to-own is usually between one and five percent of the property price. The traditional rent goes straight to the seller-landlord, as in any other rental agreement. The rent premium acts as a further deposit toward the purchase of the house. Most rent-to-own contracts are fairly short term – one to three years is the usual length – and the price of the property is usually established at the contract signing. However, other details of the arrangement depend on which type of rent-to-own agreement you enter.
Lease Option
A lease option allows the buyer-tenant to work towards the purchase of the house without an obligation to buy. This arrangement provides the buyer-tenant 12 to 36 months to save money or raise a credit score that is slightly below the needed one. A lease option also reduces the potential buyer’s anxiety about making the long-term and all-inclusive commitment of purchasing a home and provides him or her time to further consider the pros, cons and responsibilities of home ownership. At the same time, a lease option agreement gives the seller-landlord more security than with a traditional renter. The tenant can ultimately decide not to by the home, but he or she usually forfeits the original deposit and the rent premiums paid every month.
Lease Purchase
Unlike a lease option, in a lease purchase the buyer-tenant agrees to buy the house in the initial contract and is obligated to follow through with the purchase at the end of the lease term. A lease purchase provides the seller-landlord the most security outside of an out-right sale, as it contractually guarantees the eventual purchase of the property by the buyer-tenant. However, both parties should be cautious if the agreement is hinged on a significant savings or credit score improvement, as a failure to accomplish either may result in a continued inability for the tenant to purchase the home, leaving both buyer and seller in a lurch. If the tenant ultimately decides NOT to buy the house, he or she faces the potential consequences of a broken contract in addition to losing the deposit and rent premiums. The seller, then, also faces legal expenses in pursuing the broken contract.
The path to a successful rent-to-own – for both buyers-tenants and sellers-landlords – requires a solid and detailed contract and a thorough game plan. If potential buyers engage in a lease option or purchase in an effort to improve their credit over the lease period, they should make sure they do in fact raise their credit scores and will be granted loans for the mortgage. Otherwise, premiums and deposits will be surrendered, and they may end up in a worse position than in the beginning. Likewise, sellers-landlords should enter rent-to-own arrangements acknowledging that they are usually long-term solutions and not avenues for immediate capital. For security and planning, both parties should establish a property price at the beginning of the agreement – or decide to go with the market price at the time of the purchase – and write the price into the contract. Sellers, landlords, property managers and buyers/flippers who have available properties they just want to sell can list their property on http://ow.ly/2oBz6.
Sellers, landlords, property managers and buyers/flippers who have available rent-to-own homes or properties they just want to sell; can list their property with there detail home buying or rent-to-own specifics on http://ow.ly/2oBDg.
Simply add your rent-to-own homes and provide the information, listing price and option amount on the listing form. Searchers can also get information on lease options and purchases through our regular homepage searches by narrowing their search to houses with lease option or purchase agreements.
If you have bad credit and would like to buy a home, you probably already know that in the current market getting a mortgage is going to be difficult. The subprime market is gone and even FHA guidelines seem to be getting tighter all the time.
As of 2010, most lenders will require that you have a credit score of at least a 620 in order to qualify for an FHA loan. You might have heard that FHA guidelines do allow for lower scores. While this is certainly true, you should keep in mind that it is the lenders, not FHA, that underwrites your mortgage. Because of the increased liability that they face, most of them are opting for higher standards than what FHA allows for.
If your credit score is less than this, you basically have two options. You can continue to rent and work to improve your credit so that you qualify for a poor credit mortgage loan, or you can get into a rent to own home and work to repair your credit while living in the home. Which option is best largely depends on your situation. If you are only a few points away and have already saved the money that you will need for your down payment, working on credit repair can make sense. On the other hand, if you have a ways to go it can make sense to go ahead and enter into a rent to own contract on a home that you plan to purchase in a year or two. Most contracts will allow you to purchase at any time during the rental period, so you can always get a mortgage as soon as your credit score allows.
Regardless of your situation you should understand that credit repair can take some time. There are no quick fixes and you should steer clear of any company who presents some scheme that is guaranteed to improve your credit score quickly.
If you carry credit card debt, one of the best ways to improve your credit score is by paying down your debt. In fact, if you have the ability to pay off a significant portion of your debt, you should expect to see significant improvements in your credit score.
Collection accounts can be address through several strategies such as debt validation and pay for delete. Both of these can be good alternatives depending on your situation. With a little hard work, you can eventually achieve your dream of owning a home!
Other Associated sites:
http://www.offerin12hours.com/kfranklin
http://www.renttoownbuyer.com/kfranklin
http://www.realestateinvestordeals.com/kfranklin
Provide buyers-tenants and sellers-landlords additional options during questionable times for the market or the individual parties. The general agreement allows for a potential buyer, who may not have the capital to buy the house out-right or the credit to get a loan, to pay a deposit up-front, traditional rent and a rent premium and live in desired home immediately.
The deposit on a rent-to-own is usually between one and five percent of the property price. The traditional rent goes straight to the seller-landlord, as in any other rental agreement. The rent premium acts as a further deposit toward the purchase of the house. Most rent-to-own contracts are fairly short term – one to three years is the usual length – and the price of the property is usually established at the contract signing. However, other details of the arrangement depend on which type of rent-to-own agreement you enter.
Lease Option
A lease option allows the buyer-tenant to work towards the purchase of the house without an obligation to buy. This arrangement provides the buyer-tenant 12 to 36 months to save money or raise a credit score that is slightly below the needed one. A lease option also reduces the potential buyer’s anxiety about making the long-term and all-inclusive commitment of purchasing a home and provides him or her time to further consider the pros, cons and responsibilities of home ownership. At the same time, a lease option agreement gives the seller-landlord more security than with a traditional renter. The tenant can ultimately decide not to by the home, but he or she usually forfeits the original deposit and the rent premiums paid every month.
Lease Purchase
Unlike a lease option, in a lease purchase the buyer-tenant agrees to buy the house in the initial contract and is obligated to follow through with the purchase at the end of the lease term. A lease purchase provides the seller-landlord the most security outside of an out-right sale, as it contractually guarantees the eventual purchase of the property by the buyer-tenant. However, both parties should be cautious if the agreement is hinged on a significant savings or credit score improvement, as a failure to accomplish either may result in a continued inability for the tenant to purchase the home, leaving both buyer and seller in a lurch. If the tenant ultimately decides NOT to buy the house, he or she faces the potential consequences of a broken contract in addition to losing the deposit and rent premiums. The seller, then, also faces legal expenses in pursuing the broken contract.
The path to a successful rent-to-own – for both buyers-tenants and sellers-landlords – requires a solid and detailed contract and a thorough game plan. If potential buyers engage in a lease option or purchase in an effort to improve their credit over the lease period, they should make sure they do in fact raise their credit scores and will be granted loans for the mortgage. Otherwise, premiums and deposits will be surrendered, and they may end up in a worse position than in the beginning. Likewise, sellers-landlords should enter rent-to-own arrangements acknowledging that they are usually long-term solutions and not avenues for immediate capital. For security and planning, both parties should establish a property price at the beginning of the agreement – or decide to go with the market price at the time of the purchase – and write the price into the contract. Sellers, landlords, property managers and buyers/flippers who have available properties they just want to sell can list their property on http://ow.ly/2oBz6.
Sellers, landlords, property managers and buyers/flippers who have available rent-to-own homes or properties they just want to sell; can list their property with there detail home buying or rent-to-own specifics on http://ow.ly/2oBDg.
Simply add your rent-to-own homes and provide the information, listing price and option amount on the listing form. Searchers can also get information on lease options and purchases through our regular homepage searches by narrowing their search to houses with lease option or purchase agreements.
If you have bad credit and would like to buy a home, you probably already know that in the current market getting a mortgage is going to be difficult. The subprime market is gone and even FHA guidelines seem to be getting tighter all the time.
As of 2010, most lenders will require that you have a credit score of at least a 620 in order to qualify for an FHA loan. You might have heard that FHA guidelines do allow for lower scores. While this is certainly true, you should keep in mind that it is the lenders, not FHA, that underwrites your mortgage. Because of the increased liability that they face, most of them are opting for higher standards than what FHA allows for.
If your credit score is less than this, you basically have two options. You can continue to rent and work to improve your credit so that you qualify for a poor credit mortgage loan, or you can get into a rent to own home and work to repair your credit while living in the home. Which option is best largely depends on your situation. If you are only a few points away and have already saved the money that you will need for your down payment, working on credit repair can make sense. On the other hand, if you have a ways to go it can make sense to go ahead and enter into a rent to own contract on a home that you plan to purchase in a year or two. Most contracts will allow you to purchase at any time during the rental period, so you can always get a mortgage as soon as your credit score allows.
Regardless of your situation you should understand that credit repair can take some time. There are no quick fixes and you should steer clear of any company who presents some scheme that is guaranteed to improve your credit score quickly.
If you carry credit card debt, one of the best ways to improve your credit score is by paying down your debt. In fact, if you have the ability to pay off a significant portion of your debt, you should expect to see significant improvements in your credit score.
Collection accounts can be address through several strategies such as debt validation and pay for delete. Both of these can be good alternatives depending on your situation. With a little hard work, you can eventually achieve your dream of owning a home!
Other Associated sites:
http://www.offerin12hours.com/kfranklin
http://www.renttoownbuyer.com/kfranklin
http://www.realestateinvestordeals.com/kfranklin
