Rentals in Arlington>Question Details

duve.hernand…, Home Buyer in Arlington, TX

do you have rent to own homes with low down payment to move in and low credit score ?

Asked by duve.hernandez, Arlington, TX Tue Jun 4, 2013

Good morning I was looking into a rent to own home in Arlington my credit score is low but I am working on credit repair need house asap 682-241-4301

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Good morning duve.hernandez,

Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.

Saving money for a down payment? Well, heck, you can do that on your own.

If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.

Find a way to save up on your own; not with Rent To Own.

Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140

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2 votes Thank Flag Link Wed Jun 5, 2013
We have a program here at Century 21 Judge Fite that can work with your credit issues. It is a lease with the right to purchase program that gives you the right to purchase or lease the property for 3 yrs. You would have to have 2 security deposits and first months rent, however if you decide to purchase the property the deposits will go towards your down payment. Proof of funds can be in the form of a gift as well. Contact for more information.
0 votes Thank Flag Link Sun Jul 28, 2013
80% of the Lease/Options are a bad deal for the Buyers.
The other half turns into a bad deal later!
You should have been working on your credit score for the last two years.
The world will wait for you; start now!
0 votes Thank Flag Link Fri Jun 7, 2013
I agree with Trevor in the end you will be paying for your rent to own more than you would ever imagine. Typically most rent to own ask for 10-15% down or up to $10k for estates in the sub 100k range. If you're serious about purchasing let me help you correct, fix and regain the credit score you desire to actually buy.

Purchasing a property is one of lifes greatest investments. Let me help you through the process so in the end you WIN.... Thank you.

Keller Williams Realty
Real Estate Consultant
3xUS Army Veteran
Joseph Fernandez
Cell: 817-975-7258
0 votes Thank Flag Link Fri Jun 7, 2013
The short answer....YES.....I have a plan that will buy any house you pick out and lease it to you until you are ready to purchase it....Call me at 972-567-41591 for more information...
0 votes Thank Flag Link Wed Jun 5, 2013
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