Suddenly, the home of your dreams comes on the market... look!Â It's only $Xk!! And wow - has more sq. footage and yard than we thought - but oh no - our credit is borked since the holidays. What to do? Rent to Own? Land Contract?
It's a situation many people find themselves facing, and there's no easy answer. When someone wants to do either of these types of puchases, there is often a downpayment required - up to 10% of the purchase price. So if it's a $165K home, the downpayment would be at least $16,500. Most people don't have $16,500 laying around or, would prefer to use it as a downpayment on a traditional loan.
Keep in mind under one of these scenarios, the county records the property in the family's name that is purchasing the property. Keep in mind also under some scenarios, the seller/owner can actually still take out a mortgage on the property. And if they are using the rent to pay the payment and insurance and taxes, be sure to keep aware of whether or not these are actually being paid.
If you want to do a loan, and your credit is a little sketchy, there are services to which I can refer you that will give you a free initial consultation and then offer different plans to help you get back on track.
Massaging your credit means you are conservative in your use of credit cards, that you don't pay anything off or buy, say, a new car, or max out any other credit. Want to buy a home? You will be able to - in time. Call or text or email me for more information, or see my web site http://www.DAYTONREGIONHOMES.com. Have a great weekend!