Home Purchased With Lease Rent to Own Agreement
How about a lease rent to own agreement as a way to buy a home with bad credit? Ever heard of it before?
The lease to own option is a great way to buy a home if you have had recent credit problems and cannot currently qualify for a mortgage. Perhaps you have just gone through a foreclosure, if so, you may have to wait for up to 5 years to be able to qualify for a mortgage. But with a lease rent to own option you may be able to enjoy the benefits of being a homeowner sooner than later.
What Is A Lease Rent To Own Agreement?
The lease rent to own agreement is an agreement between you, a potential home buyer, and a home seller, or home owner, that allows for you to lease the home for a certain amount of time with the ultimate being that you buy the home from the seller after a period of time.
The lease rent to own agreement is also called a lease purchase option, or a lease to own, or a rent to own agreement. This agreement allows you establish a rental history that demonstrates a commitment to homeownership which his what any mortgage underwriter wants to see to aide in their mortgage application approval process.
With prior and recent credit problems you will most likely have low credit scores which will keep you from qualifying for a mortgage. With a lease rent to own agreement, all you have to do is convince a home owner to sign a lease purchase agreement with you. Typically in this situation – money talks. If you have some money saved you can use this for a down payment on the agreement.
If you do have to put money down, make sure to make photo copies of all paperwork including the check before you give it to the home owner as well as the canceled check. Later when you try to qualify for a mortgage this paperwork will be very important in helping you establish how much money you used as down payment so you can get credit for it on your mortgage application.
For more information on the Lease Purchase Agreement visit: Lease To Buy Home Purchase Option Good For Bad Credit Home Buyers.