Your credit score is one of the most important factors to consider when it comes to managing your finances. It is a numerical representation of your credit history, serving as a snapshot of your creditworthiness. Lenders, insurance companies, landlords, and other financial institutions use your credit score to evaluate your risk level and determine whether or not to approve you for their offerings.
Great! After searching high and low, you've finally found an owner willing to offer a lease option for the home you desire. However, your dream of homeownership can still be derailed if you're not careful. Now that the hardest part is over, it's time for some due diligence to determine whether the rent-to-own agreement is worth signing.
There are multiple ways to finance the purchase of a home. The most common method is through a mortgage. However, not everyone qualifies for a mortgage. For example, recent college graduates with good jobs but insufficient credit history, or successful entrepreneurs without W2 pay stubs, may not qualify.
Some people mistakenly believe that rent-to-own homes are a scam, but that's not true. Many people have successfully become homeowners through rent-to-own arrangements.
An Urban Institute study reported that over 50% of renters have a credit score of 650, which is barely enough to qualify for a conventional mortgage. While bad credit mortgages are available for folks with a 650 or lower credit score, borrowers should expect to have higher interest rates and to pay more money in the long term. An alternative path for people with a poor credit score is to consider a rent to own home. While renting, people with poor credit scores have time to improve their credit score and enjoy the benefits of living in the home of their choice. Here are some tips to boost your credit score which can help you to buy back a rent-to-own home and improve your overall financial situation.
Mobile homes have been a popular choice for affordable housing, and renting to own a mobile home can seem like an attractive way to achieve homeownership. As with any major financial decision, it is important to carefully consider the pros and cons before making a commitment...
When most aspiring homeowners tour open homes, they tend to focus on the functional and the aesthetics features of the home, such as layout, curb appeal, decor, etc. It is understandable as aspiring homeowners want to understand how those features will impact their daily living experience in the home. Is the home right for them and their family? More importantly, will the home make them feel safe and happy? Specifically, aspiring homeowners at a bare minimum should consider the following attributes of a home.
There are many paths to financial independence. One of those paths is through real estate investing. A popular technique that numerous new real estate investors start with is house hacking. House hacking helps lower the cost of ownership and generate some passive income by renting out part of a home. To get started...
Homeownership is becoming harder for more Americans to achieve. Higher home prices, which has outpaced income growth, and higher interest rates have made it more challenging to start on the path to home ownership, especially for first time home buyers. However, rent to own homes are a potential solution
Home buyers with a bad credit score can still qualify for mortgages, which are referred to as bad credit mortgages. Unfortunately, bad credit mortgages are more expensive, require a larger down payment, and may have other stipulations compared to conventional mortgages.
