Rent to own houses. How does it actually work? Good question right! When it comes to buying a house, there is one important question that must be answered: How do I qualify for a mortgage? Not everyone with a low FICO score is qualified for a mortgage. According to a recent study, there is a 25% chance that someone with a credit score of 550 will be denied a mortgage. That is why buying a house with a rent to own option is a smart alternative. First, the Rent to Own option allows for a lower monthly payment. Second, a rent to own loan does not necessarily require a down payment. In a rent to own option, the only money that you are putting down is the monthly rent X’s 2.
Rent-to-Own (RTO) is a popular housing option for people with less than perfect credit. It is a type of contract where the buyer pays a relatively small down payment, monthly rent, and any interest or fees associated with the purchase, and then the seller sells the house back to them after a set period of time (1-5 years). These rent to own opportunities are giving people everyday people a chance at Home Ownership.
So you’ve found a great house but you have bad credit, what do you do? In the video above we are going to talk about rent to own and how it can help you get a great house with not so great credit.