Home Buying in Philadelphia>Question Details

Stephanie Ra…, Home Buyer in Philadelphia, PA

My credit is not so good 570 and still trying to fix it up.I am desperately trying to find a rent to own for my family and I can any1 help w/some info

Asked by Stephanie Ramos-lewis, Philadelphia, PA Mon Dec 2, 2013

Every site I go to for rent to own ask for credit card information I just want to know is rent to own a good idea A few minutes ago - No answ

Help the community by answering this question:


Most of the time the term “rent-to-own” is aimed at someone that is trying to “work around” the system that is there to protect them. The landlord or investor is marketing to the fears of someone that is not able to get a mortgage. So trying to use this method is usually not a winning move because the buyer is not aware of how the rules will work against when it comes time to sell or pay off the seller. Getting in is only the first move and the ONLY reason to do that is some long term goal.

Pretend you go this route, what is the exit strategy? You can’t sell a rent-to-own to a typical buyer because you don’t own it. They can’t borrow money to pay you because of the same rules you tried to work around. There is a title seasoning requirement for most lenders.

After the issue that is keeping you from getting a loan is fixed and you try to refinance in order to pay off the seller, the mortgage underwriter MUST follow the guidelines you tried to circumvent, how do you think that works out? Here’s a hint, they will follow the guidelines, not the contract between you and the seller. That is only one of the reasons this method doesn’t usually work out. The other big issue is buyer optimism and timelines. The loan officer that turned down the loan application answered the buyer’s question regarding how long before I am eligible, giving the best case scenario. The buyer uses that as the time line for the rental period – poof - it takes a lot longer. Use a worst case scenario not the best case and that improves the odds slightly as long as the contract is worded to meet the requirements of the mortgage guidelines.

I hope my insight keeps you from losing hard earned money but if you still think this method is a winner at least protect yourself. I linked some info below, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
0 votes Thank Flag Link Fri Dec 13, 2013
Hi Stephanie,
My name is Trisha and I'm a Realtor in Lansdale. Your credit score is not that far off from being able to buy. There are FREE credit classes you can attend that mortgage lenders take into account when looking at your credit history. At these classes you also get to talk to a credit professional who will be able to tell you specific ways to improve your credit. If you would like more information, please contact me.

Trisha Kozak
Coldwell Banker Realty Corp
office 215-855-5600 x187
0 votes Thank Flag Link Fri Dec 13, 2013
Hi Stephanie,

I suggest that you stay away from Rent to Own at all costs. It does more harm than good. And 99.6% of the time, they are ever successful. Rent for a year and a half and work on your credit (pay off some debts, pay your credit cards on time) also more importantly, don't add on any additional debt or have your credit run as the more you have your credit run, your credit score will go down. After about a

If you have any questions, feel free to give me to give me a call at 267-918-6322 or email me at victoria@themackgroup.org.

Good luck

Victoria Mack
The Mack Group
Keller Williams Real Estate - Media
1400 N. Providence Rd, Building II, Suite 1000
Media, PA 19063
0 votes Thank Flag Link Sun Dec 8, 2013
HI, Stephanie I have a rent to own property coming up in the near future. I'd like to get more information from you and see if I can be of any assistance.
Please contact me @ darryl.smith14@gmail.com
0 votes Thank Flag Link Sat Dec 7, 2013
Where would you like to be in Philadelphia? We have a few rent to own properties. Thanks, VihSat
Email: vihsat@gmail.com; Phone: 646-404-4753.
0 votes Thank Flag Link Sat Dec 7, 2013
The short answer is "no".

I recommend doing a search of these forums to see the myriad answers on the subject.

Joshua Stein, ABR®, e-Pro®
Coldwell Banker Preferred – Conshohocken

Office: (610) 828-9558 * Cell: (215) 866-8030
Direct: (484) 270-1165 * Fax: (215) 999-5894
Email: jstein@cbpref.com
Web: http://www.joshuasteinhomes.com
Blog: http://jsteinhomes.wordpress.com/

PA License #RS317975
0 votes Thank Flag Link Mon Dec 2, 2013
Rent-to-owns can be a good answer for someone in your situation. However, any site that asks for your credit card information is a scam. Real investors can make a lot of money on lease-options--from the up-front option fee, from a positive cash flow, and from the sale of the property. Often, that's several thousand dollars up front, several hundred dollars a month, and quite a few thousand dollars if the tenant-buyer exercises the option.

The last thing a true investor is interested in is throwing up roadblocks (in the form of some fee to view lease-options). And no investor is going to try for a profit of, what, $35 or $50 or whatever, when there's tens of thousands of dollars to be legitimately made.

Here's a link to a blog I wrote on how to find lease-options. (Not one suggests spending a penny up front.) http://bit.ly/findaleaseoption

Hope that helps.
0 votes Thank Flag Link Mon Dec 2, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
Please be safe and DON'T give your CC info to any rent to own web site this is a money grab there is no reason to give any money till you do a application in person. Please call me at 267-934-1971 when dealing with rent 6to own ask for License numbers no matter what they are and check them out.

Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152
215-725-5700X49 cell 267-934-1971
Web Reference: http://www.GreatPaRE.com
0 votes Thank Flag Link Mon Dec 2, 2013
Happy Cyber Monday Stephanie!

No doubt about it...a credit score of 570 makes Owners / Landlords, Mortgage Lenders and Real Estate Agents see your situation as precarious. I'd like to get more information from you, and see how we can move forward. Please contact me directly.

0 votes Thank Flag Link Mon Dec 2, 2013
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