Home Buying in 55423>Question Details

mrs.amelia.t…, Home Buyer in Minneapolis, MN

Any advice for someone who has enough income, but not good enough credit, and would still like to own a home someday? I want to rent to own.

Asked by mrs.amelia.tyson, Minneapolis, MN Wed Jun 19, 2013

Im not sure where to look for credible rent to own info. There are many websites which are scams who want you to pay for some lists of rent to own homes, my cousin did this and it was a scam, she never found a rent to own home.
Please help! I need more living space for my family, and dont have the credit to buy right now.

Help the community by answering this question:


Hi. Rent to Own is an option, but risky. I have a Bridge Loan you can qualify for today as long as you do not have any liens or judgments. Low Credit score or bankruptcy is OK. Its 100% financing up to $225,000. You will have the same benefits as a traditional home owner. You can apply today and be in your new home within 30-45 days. This is an exclusive offer and few brokers are even aware of this. For more info please call 952-456-1426 or email hatim@teamestatesrealty.biz Thank you.
1 vote Thank Flag Link Wed Jul 10, 2013
Everyone's situation is different but rent-to-own options can be a viable way to get into home ownership through either a true rent-to-own or a contract for deed purchase. The important thing is to make sure that you have professional representation so that someone is looking out for YOUR best interests. There are many scams out there and many contracts that have been designed only of benefit to the seller. I can't answer for the site you are searching but I can tell you that, with proper representation and a good solid contract, both options can be a great way to get into a home while your credit is tight.

Once your credit improves, you can apply for a mortgage and pay off the contract for deed or rent-to-own and then have a regular mortgage. But...you will need your contract to be written so that this is allowable and enough time available for you to get your credit back in good standing. If you want to talk some more about your particular situation, please feel free to give me a call at 612-802-5209
1 vote Thank Flag Link Wed Jul 10, 2013
My advise: rent until you are approved for a mortgage. Don't attempt a rent to own.
I have heard that renting to own is usually a nightmare!

Don't hesitate to ask me anything :)

Cody Anderson, MN Licensed Realtor

Metropolitan Home Team

Phone: 612-242-5752

Email: cody@metropolitanhometeam.com
1 vote Thank Flag Link Mon Jul 8, 2013
* don't pay a credit repair company for something you can do yourself.
* pay you bills, but do not pay off your creditors
* save some money; live well within your means
* do not consider Lease/Options; they benefit the Seller, not you.
* be patient; the Real Estate Market will be there when you're ready.
1 vote Thank Flag Link Sat Jun 29, 2013
Your best path would be to speak with a loan officer, who can then put you in touch with credit repair specialists. There are a number of ways to improved your credit score, and these individuals will help you do just that. Of course it will take some time, dedication, and persistence.

As far as rent-to-own options, your best bet is to approach home sellers. Depending on their situation, it is possible that they would entertain such a proposal. And always be wary of those you find on the internet.

Best of luck!

Josh Pelto
1 vote Thank Flag Link Sat Jun 29, 2013
I suggest renting until you are able to buy. Mixing the two together is often a recipe for disaster. JUST WHAT I HAVE HEARD :)

Hope it all goes well for you. If you ever need someone to help you review a lease I can help.

Thank you,

Cody Anderson, MN Licensed Realtor

Metropolitan Home Team

Phone: 612-242-5752
Email: cody@metropolitanhometeam.com
1 vote Thank Flag Link Tue Jun 25, 2013
Contract for deed sounds like it might be your best option with your situation. This allows you to own the house while building or rebuilding your credit. With enough time, you will then be able to secure a loan for the house. Please feel free to contact me for further details about this approach and to discuss your options.

Paul Tharp
Coldwell Banker Burnet
1 vote Thank Flag Link Fri Jun 21, 2013
Hi, mrs.amelia.tyson!
Not sure where your cousin got their info, but I'm really sorry it turned out to be a scam.

There are ways to build your credit if you want to go for it. It's just a matter of making your payments on time for a good 6 months to a year for car loans, credit card payments, student loans, rent, etc. That's the best way to get your credit back to where you want it.

If you're truly buying rent to own, there will be a contract that indicates WHEN you will actually be buying the property. So, that means your plan to get your credit scores back up is is MUST. If you DON'T adhere to the contract and buy the property when you agreed to in the contract, the sellers/original owners can cancel the deal and they get to keep all of the money that you've paid toward your downpayment over and above your rent!!! That's a bad deal for you.

If you buy on what we call a contract for deed or seller financing, the sellers usually want you put a substantial amount down, like 10-15-20% at least. You will also have a date on that contract that indicates when you will be buying the seller out and securing outside financing, like 2 years, 5 years something like that.

Real estate agents can find rent-to-own properties for you on the MLS, but I'll be honest, they are difficult to find. Especially these days, the rental market is still very strong, so most sellers want to stay in the driver's seat and either just rent or sell outright.

Good luck!
1 vote Thank Flag Link Wed Jun 19, 2013
Yes, there are some scams. But there are also legitimate deals.

One point to keep in mind: Many lease-options (rent-to-owns) aren't listed that way on the MLS. They may be listed for sale and the owner may be willing to rent before selling. Conversely, they may be listed for rent, but the owner is open to selling. Sometimes--interestingly--they're listed on the MLS twice: Once for sale, once for rent. In other words, very often you (or, more likely, your agent) will have to approach the owner and propose lease-options.

Here's a link to a blog I wrote on how to find them: http://bit.ly/findaleaseoption

Hope that helps.

P.S. It should never be necessary to "pay for lists." There's plenty of profit in legitimate lease-options and for people who put them together. When I've done lease-options, my goal is to make sure as many people as possible know about them. Why would I want to limit that knowledge by charging for a list? And one other tip: Use a Realtor who knows, understands, and is comfortable with lease-options. Many are. Some aren't.
1 vote Thank Flag Link Wed Jun 19, 2013
Don Tepper, Real Estate Pro in Burke, VA
Call me today. I've helped a number of people in your situation buy a home with low credit scores. It's 100% financed and you reap all the benefits of home ownership. Just you and your mortgage company. The seller gets their cash at closing and you get a nice home to call yours and gain all the benefits of home ownership. This program is brand new. NO ONE ELSE can offer this to you. This is a Plan B option when other mortgage companies turn you away. It's only here in MN. No scam. It's real. The only catch is you cannot have any liens or judgments; if so then you have to pay them off than we can help. The company I use has been around longer than Wells Fargo, but this program we just rolled out June 2012. Call/text me today to see if you would be a good candidate. 952-456-1426
1 vote Thank Flag Link Wed Jun 19, 2013
I know an investor who does probably at least 20 properties a year and sells them on a rent to own. Are you on facebook? I just "liked" his business page, and when new properties hit the market I get notified. If you want get in contact with me and I will help you get in contact with him.

That is a good way to do it, because it is really hard to find legitimate rent-to-own listings. The only place I ever look is craigslist, but you do still have to be careful about scams.

The other side is get working with a loan officer to rebuild your credit. Too many people procrastinate on fixing the credit issues. Those people are not meant for rent-to-own because they will get burned. I can give you a referral to get started on this. You will need to figure out how long it will take until you can purchase the property, because that will determine the length of your lease on the rent-to-own.

Hope to hear from you soon!

Chris Block
Realtor 651-307-7663
1 vote Thank Flag Link Wed Jun 19, 2013
Good afternoon mrs.amelia.tyson,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote Thank Flag Link Wed Jun 19, 2013
Hi Amelia,

There are many programs available for a person who has less than perfect credit. With certain types of credit you may only qualify for an FHA loan. The best advice I can give to you is to speak with a qualified mortgage professional who can look at your situation and give you tips to increase your credit score. There are ways to boost your score significantly within 6 months to a year. If you have any questions please call me: 612-840-1093.
0 votes Thank Flag Link Mon Mar 17, 2014
Hi. I dont know if you bought a house already, but I have a wonderful opportunity for people in your situation to buy a home today. Its strictly income based funding. No, low, and bad credit is ok!You can even have a bankruptcy, foreclosure, or short-sale on your record and we will still finance you 100% up to $225,000. Best part is that we report your payments as a mortgage so you can start to build your credit fast! Call me for the details. THERE IS NO OTHER PROGRAM LIKE THIS IN MINNESOTA! Lenders: this is also a great way to build your refi- pipeline... Call/Google me at 952-456-1426 Team Estates Realty: Find me on Trulia, Zillow, Linked-In, and Facebook!
0 votes Thank Flag Link Mon Feb 17, 2014
Building a credit history sufficient enough to get a home loan really isn't all that difficult with just a little time and focus on the end result. I talk to clients every week, who I say no to today, but 6 months from now are buying a home. Hard to give you advice without seeing your credit report... Contact a local mortgage lender like myself for a credit review and advice.
0 votes Thank Flag Link Mon Feb 17, 2014
The good news is that credit can be repaired, it doesn't take that long to do so, and it is worth all of the effort because you save thousands of dollars in the long run. The best way to repair your credit for buying a house is to talk to a HUD approved housing counselor. They will know exactly what work needs to be done in order to get a mortgage loan and they usually do not charge for the counselling. Beware of services that repair your credit. You should be able to accomplish the same goals without cost and unfortunately, scam servicers prey on people with credit problems. I work in Minneapolis MN and we have workshops and counselling services provided by the Home Ownership Center, http://www.hocmn.org. I would check out that web site for contacts to similar servicers in your area. Good luck!
0 votes Thank Flag Link Sun Feb 16, 2014
Call a credit repair place. They can probably help increase your score pretty easily.
0 votes Thank Flag Link Fri Nov 29, 2013
Hi, we have an loan officer at our office (5516 Lyndale Ave S). You can meet with her and try to make a plan to improve your credit according to your needs. I'm not sure what your situation is, but sometimes you can qualify even when you think you don't. I hope this helps you!
0 votes Thank Flag Link Wed Jun 19, 2013
Rent to own is not that common here in the Twin Cities. Sure there are some out there, but making sure it isn't a scam is a good idea. I do happen to have a listing in the eagan area that the seller is planning on renting out. This type of scenario does exist. If you are interested please contact me and I'll give you more info about it.
As far as credit goes, you should talk with a mortgage professional and they can give you advice as to what can be done to help raise your credit score. I've got some contacts in the industry if you need some.
Thanks and good luck!
Web Reference: http://www.stevenhong.com
0 votes Thank Flag Link Wed Jun 19, 2013
Hi. I have the perfect program for you. Please contact me for the details but its 100% financing w/no deed restrictions. You can have bad credit, a foreclosure, and a bankruptcy and I can still help. As a Broker I take pride in offering services to all people and not just a select few. All we need to do is verify stable income and you can be owning your home within the next 30-45 days. Please call or email me if you are interested to learn more. You can also find me on Zillow and Facebook http://www.facebook.com/teamestates 952-456-1426 hatim@teamestatesrealty.biz
0 votes Thank Flag Link Wed Jun 19, 2013
I agree there are scams so be careful Talk to a local licensed real estate agent and ask for advice. also talk to a lender and see what needs to be done to improve your credit.
0 votes Thank Flag Link Wed Jun 19, 2013
I agree there are scams so be careful Talk to a local licensed real estate agent and ask for advice. also talk to a lender and see what needs to be done to improve your credit.
0 votes Thank Flag Link Wed Jun 19, 2013
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