Better Than Rent To Own Home Options
Rent to Own (aka. lease option or lease purchase) is still practiced today, but there are several reasons why you should not choose this as an option for buying your home.
You could lose everything.
With a normal foreclosure you still have an opportunity to get back some of your investment, but you have no opportunity in a rent-to-own option. Also, be ready to move faster if you cannot pay on time. While in a lease agreement a landlord can start eviction proceedings immediately when payment is past due and it takes a lot less time to be evicted out of a rental than a home you own.
Your down payment portion of your monthly payment may change without your permission.
At the time of transitioning the agreement to a purchase, the lender may decide to change what was the “fair rental value” of the property, and the payments you thought were going toward a down payment may be lost to the landlord.
If you don’t buy the property, you will likely lose the down payment money.
The amount you paid above normal rent that you expected to go toward a down payment usually goes to the landlord if you do not buy the property. It is part of the benefit to the landlord for taking the risk of going into a rent to own agreement.
If you don’t fix your credit, you will not be able to get a loan when you need it.
This is likely the biggest reason why you should not go into a rent to own agreement. If you have a credit problem now, you will likely have a credit problem later. Why pretend like the problem is just going to go away? Fixing your credit today means buying today. Waiting to fix your credit is like waiting to treat cancer, if you do not take steps to change what is going on, things will likely get worse.
So what would be Better than Rent to Own?
What would be better is skipping the “rent” part and going directly to owning your own home. Now let me tell you why Build Credit Plus exists. We wanted people to achieve their dream of home ownership, no gimmicks, no games, and no gouging. Smart people get a helping hand when their burden is too heavy and we are here to lend you a hand to a new life of better credit and your very own home.
If you are struggling with bad credit our credit repair can help you get on the road to home loan approval.