Home Buying in Kyle>Question Details

Claudia, Renter in Austin, TX

Rent to own in kyle tx

Asked by Claudia, Austin, TX Sat Jun 22, 2013

We rent in Plum Creek in Kyle but have bad credit. We want to buy and go through a va loan and want to see if there are any programs we can go through to qualify

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There are potentially a lot of scams with rent-to-own homes. As mentioned by another agent below, the homeowner has little incentive to keep paying their mortgage and will stop paying it and pocket the money. You have to be absolutely certain that the homeowner owns their home free and clear if you are going this route.

If you are a veteran, there are several programs available that will qualify you to buy at 580 FICO with a 5% mortgage, possibly less if your loan in underwritten by the Texas Veterans Land Board. Additionally a veteran using a VA or a TX VLB loan can purchase a home with 0%, something few others are able to do.

Jordan Gouger
Realtor, TAHS
Keller Williams
512-693-9297
0 votes Thank Flag Link Tue Mar 11, 2014
Most lenders will excuse certain "bad" debt if they it more than two years old and you have a creditable reason of how/why the "bad" debt occurred. An example would be; there was an illness that prevented you or your spouse from working or lost job due to layoffs. For a lender to waive one of these items from your credit score you will have to provide some sort of documentation proving your case.
0 votes Thank Flag Link Mon Jun 24, 2013
So are you looking for a rent to own or do you want to buy using a VA loan?

If you're looking for rent to own, what you didn't mention is how much money you have available for a down payment and what you're looking to buy. You will need a minimum of 8% to 10% of the purchase price for a down payment on most rent to own properties.

If you're seeking VA financing, you just need credit that will be acceptable by VA standards and perhaps some cash for closing costs if the seller won't assist you with them.
0 votes Thank Flag Link Sun Jun 23, 2013
What your idea of "BAD Credit"? Any repossessions, bankruptcies, evections and or late payments esp. student loans and when?
What I have seen several times is buying a home with "lease to own" and when you pay the rent the seller stops paying the bank (that really owns the home) and you'd have to move because the home is foreclosed on.
Call me, (Frank 512-504-3474) if you need free advice on how to improve your credit.
0 votes Thank Flag Link Sun Jun 23, 2013
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