Home Buying in Fort Worth>Question Details

Ash_ley504, Renter in Fort Worth, TX

Will I still be able to rent to own a house or townhome if I have bad credit? And with that being said, if so, can I negotiate my monthly payments?

Asked by Ash_ley504, Fort Worth, TX Mon Jul 11, 2011

Rent to Own option

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Every owner will have different standards. I do a lot of leasing in the area and we usually look at the big picture and not just credit score. If you have a stable income, and previous rental history that is verifiable than that is normally enough. My best suggestion is to have a very good letter of explanation prepared when you complete an application. Be upfront about your situation, and do not waste money on application fees if they tell you credit scores are a factor. I would be very careful with rent to own deals. Typically you are going to pay some very high interest and pay way more for the home than it is worth. I would try finding a low rent so that you can save your money, and get some help with your credit score so that you can be ready to buy in the future.

Good luck, Mindy Lowry, RE/MAX Heritage
1 vote Thank Flag Link Mon Jul 11, 2011
Each landlord will have to evaluate your situation and make a decision. Try to create a picture of your circumstances so they can understand what happened in your past. If you just made some bad decisions let them know too... honesty is the best here. When I am pre-qualifying tenants for my clients we will always consider an application. The rental market is tightening up so you will most likely find it more difficult but you will be able to find something in most cases. Everything is negotiable in real estate so the monthly rent can be negotiated as well.

Good luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
1 vote Thank Flag Link Mon Jul 11, 2011
Be very careful about rent to own situations. They usually do not benefit the buyer and there are many common misconceptions behind this situation. Your best bet is to take the time to repair your credit so you can buy a home. Read more on the link below about common renting to own misconceptions.

Good luck,

Richard Schulman
Keller Williams Realty
0 votes Thank Flag Link Mon Nov 14, 2011
Well these days there is a lot of competition.
We're finding the best houses often rent just days after going on the market.
If you take time to negotiate you often lose the house to someone willing to pay the price, and move in quicker.
We are finding many landlords won't hold properties, and some tenants now negotiating up, rather than down.
As in please take my application, I'll pay an extra $50/month if you take me.

It's brutal in many areas of town now.

Many apartments are also full.

If you credit is bad....start paying all bills on time or early. Get a copy of your credit report. If you have any collections start paying them off. This should help your score.
0 votes Thank Flag Link Mon Jul 11, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
First thing to remember is that with bad credit you're in no position to negotiate terms unless you find a very unsophisticated seller and you're a good at bluffing. Kind of like a drunk trying to negotiate with an arresting officer....just doesn't work out well.

Rent to own (aka "lease option") are mostly a thing of the past in Texas because of legislation that puts huge burdens on the landlord / owner who is selling a home this way. While they are not technically illegal in Texas, I don't know of any investors or real estate attorneys who would recommend a seller attempt this method.

If you have a 10% down payment available, you could likely find a number of homes to purchase via owner financing, but contracts for deed and lease options will be few and far between.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Mon Jul 11, 2011
Those would be questions for the seller of the home. The way I see it, you don't have much leverage as far as any negotiations on terms or price. Bad credit sucks, and makes you a high risk and you'll pay for it. Beware if the seller doesn't not own the property free and clear. I've seen people get into these deals where the tenant is making payments and the landlord lets the property go into foreclosure then the tenant gets evicted and loses any down payment they made .
0 votes Thank Flag Link Mon Jul 11, 2011
Hi Ash, Yes it's possible in Texas We're not sure how popular rent to own is. However we can tell you that it's very likely more deposit money will be required. Monthly payments is also a factor with your current credit issues. We have found in NJ rental amounts can increase when credit is an issue or Landlords will ask for 1st and last months rent, 1.5months security and or possibly extra months in rent in advance.

Hope this helps

Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Mon Jul 11, 2011
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