Pretend you go this route, what is the exit strategy? You canâ€™t sell a rent-to-own to a typical buyer because you donâ€™t own it. They canâ€™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? Hereâ€™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 doesnâ€™t usually work out. The other big issue is buyer optimism and timelines. The loan officer that turned down the loan application answered the buyerâ€™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 â€“ 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,
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.
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.
Coldwell Banker Realty Corp
office 215-855-5600 x187
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 email@example.com.
The Mack Group
Keller Williams Real Estate - Media
1400 N. Providence Rd, Building II, Suite 1000
Media, PA 19063
I recommend doing a search of these forums to see the myriad answers on the subject.
Joshua Stein, ABRÂ®, e-ProÂ®
Coldwell Banker Preferred â€“ Conshohocken
Office: (610) 828-9558 * Cell: (215) 866-8030
Direct: (484) 270-1165 * Fax: (215) 999-5894
PA License #RS317975
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.
Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152
215-725-5700X49 cell 267-934-1971
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.