Rent to owns are rare and even more rarely are they a good deal for the renter/buyer. The vast majority of rent to own renter/buyer's never end up buying the house. They are a great deal for the landlord/Seller as they get to collect large up front deposits and over market rent only to do it all over again in the same
house. I consider it basically immoral and predatory in most cases.
Resolving credit issues isn't rocket science and a local mortgage lender can and often do assist buyers with this. Many things you can do yourself, others the lender can direct or assist you with.
Most people in this position are far better off renting the least expensive place they can stand to live in and save up some down payment, get on a budget and fix their credit. Once you are qualified, you can select any listed property in your price range and you've fixed the issues that hurt your credit.... more
Sorry to say, but there really are zero options for you until you can get your scores up to at least 620-640. You should sit down with a local lender who can review all of your financial info, as well as give advice on how to get your scores up. If you have multiple accounts in collections, you'll need to get current on them, or pay them off. If you don't have enough of a credit history, you may need to get a credit card or two, and use them (but sparingly) and pay them off every month. Lenders want to see a good credit history, and ability to repay your debts before they lend you hundreds of thousands of dollars. Make sense? Good luck!... more
I know this thread is a bit old however I wanted to share the current guidelines for any new buyers that are currently facing this same challenge. I will admit is using cash to buy a home when applying for a loan is not ideal it is not always unacceptable. Many lenders or loan programs do not allow for the use of cash for many reasons including but not limited too, loan guidelines, secondary market restrictions, anti money laundering etc. However in some cases cash can be used if accepted by the lender and loan program when properly documented. I have copied and pasted the current FHA guidelines in regards to this situation. So can may be accepted in some cases. This can be found on page 228 of the pdf actual page 226 of the FHA 4001 handbook effective 9/14/15 please note FHA can change these guidelines at any time, I DO not work for or represent FHA.
(B) Cash on Hand (TOTAL)
Cash on Hand refers to cash held by the Borrower outside of a financial
The Mortgagee must verify that the Borrower’s Cash on Hand is deposited in a
financial institution or held by the escrow/title company.
(3) Required Documentation
The Mortgagee must verify and document the Borrower’s Cash on Hand by
obtaining an explanation from the Borrower describing how the funds were
accumulated and the amount of time it took to accumulate the funds.
The Mortgagee must also determine the reasonableness of the accumulation based
on the time period during which the funds were saved and the Borrower’s:
? income stream;
? spending habits;
? documented expenses; and
? history of using financial institutions.
Currently based on the Fannie Mae Selling Guide effective 12/15/15 cash on hand is not acceptable please see copy and paste of guideline listed below found on page 476 of the pdf which is also the page of the guide.
Cash-on-hand is not an acceptable source of funds for the down payment or closing costs.
I currently only finance properties in Florida however if you need a recommendation in another area I may be able to help.
Yes, it may take a day or two to upload from zillow. I doubt you can submit a listing on Trulia because you are not a real estate professional. Moreover, now with the link of zillow and Trulia, I believe that submitting only comes from Zillow.... more