Home Buying in Oxon Hill>Question Details

Clent, Home Buyer in Oxon Hill, MD

we are trying to buy a house, but i don't have the best credit. if i found a property that i am interested in would be possible to rent to own if

Asked by Clent, Oxon Hill, MD Tue Jan 25, 2011

your credit right this minute is'nt up to par.

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7
Akil Walker’s answer
Hi Client

Hopefully things are improving and you are in a better position to buy. Get a free credit report and make everything on there is accurate. Prior to renting talk to the owner about the rent with opt to buy.

good luck
0 votes Thank Flag Link Sat Feb 9, 2013
Anything is possible, but most owners want to sell and not become landlords hoping to sell in the future. It is hard to find rent to own property because so very very few work out and the owners just get them back (actually they never loose them).

Let me ask you WHY would you want to rent to buy? I know what you will say, so you can save or improve your credit to be able to buy later. Unfortunately this seldom works out in your favor. Credit is not easy to improve quickly and if you have a problem in the next year it can make it worse. The down side is that you will agree on what you will pay the owner in a year and place a deposit down. Then each month you will pay an extra $100 or $200 on top of the rent, this extra option fee is saved by the owner and added to your down payment when you buy the house. If you don't buy it when you agreed to, then you loose all the money and deposit the owner has collected. It's an awful deal for most renters because they don't go through. To make things worse, home values are dropping so in a year the bank might not even loan you the money to buy if they think the house is not worth what you agree on today and you loose the money.

Rent - save and improve your credit and then buy when you can. Stay away from rent to own.
2 votes Thank Flag Link Tue Jan 25, 2011
Agree 100% with what Tim said. Tim basically covered everything. So if you are not ready to buy now,continue to save your money and continue paying your bills on time. In about maybe say six months or so,you might be in a better position to just out right buy a house instead of doing a rent with option to buy. If you like I can refer you to some very competent lenders who can help you. If you are interested please call or text me at 202-378-0283. Or send me an e-mail to bswiff@yahoo.com. Good luck to you.
1 vote Thank Flag Link Tue Jan 25, 2011
Hi Clent! I would not advise doing a rent to own. If you really want to do a rent to own, I will help you. contact me miekeba@heymannrealty.com
0 votes Thank Flag Link Sun Feb 10, 2013
Hi Clent, email or call me to discuss your situation in more detail. I may have some options for you.
0 votes Thank Flag Link Tue Jan 25, 2011
HI Clent, when you say you don't have the best credit it means your credit is below 620? If so there are so many ways to quickly increase your credit score.
1. contact all 3 credit reporting agencies see if there are things on your credit that you have paid, or wrong
ask that they be removed, the creditors have 30 days to respond and if they don't respond the issue gets
removed and your score goes up.
2. if you have any credit cards or loans each month pay just a bit more than what is owed, and if possible
make an extra payment during the course of the same month it doesn't have to be another full payment
just alittle something, this will increase your credit over a 3 month period.
3. If you dispute things on your credit that have been paid or not yours your credit will go up just a few points
but all this adds up.
4. Don't run your credit or have anyone run your credit for at least 3 months or longer
5. Don't be late on any payments
6. If at all possible put alittle away each month during this time $50 a week adds up over 3 to 6 months
Even if you have enough for a downpayment already to purchase this little extra will mean alot to a bank
approving you for a loan.
7. Rent to Own have never worked out for anyone we've ever met in our 20yrs in Real Estate so it's of our
opinion this is not the way to go.

All the Very Best

Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Tue Jan 25, 2011
I have been a residential real estate agent in MD for the past 10 years. I have never seen a successful rent to own contract. Rent to own is kind of an antiquated system to help a renter build savings for their down payment. The tenant pays additional monies each month on top of the rental payment and the Landlord sets that money aside to be applied towards the buyers downpayment at settlement. Unfortunately sellers with a saleable property can pretty easily find a qualified buyer and get their property sold. So this method is likely only a good match for a renter/buyer with bad credit and a seller/landlord with a property that won't move on the normal market.
0 votes Thank Flag Link Tue Jan 25, 2011
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