RentToOwn-HouseFinder.com

Do I have a better chance of getting a rent to own house than a loan?

I have no credit history, should I get a credit card and get some revolving credit first, or would it be a better idea to try to find a rent to own house for the money I would save on regular rent?

Public Comments

1. yes
2. "Rent to own" is a very bad idea - there is a lot of risk since the property title remains with the current owner while you are "renting." What if the current owner defaults on HIS mortgage and his lender forecloses? What if he dies? Do NOT enter into any such agreement without hiring a lawyer to review it first. Buy a house the old fashioned way: Establish your credit, save up for a down payment and WAIT till you are financially able to afford a purchase.
3. Depends where you live at. In general try to get Mortgage, where the interests will be lower in compare to the interest set out in the loan agreement. If you can manage to obtain mortgage, this will be secure on the property, and there are some some sort of safeguards, depends on where you live, on an event of losing employment you will not lose your property or house, until few months. Try to approach the bank or mortgage companies, do this only if you have job now and good traceable employment history and shows that how good you been in the past or until now. This should be enough for most mortgage company to issue with a mortgage confirmation certificate. It is a lot easier to obtain mortgage as in Loan for the purpose of buying a property and the loan is secured on the actual property, this is Called Mortgage, there are good rates, meaning lower interest, depending on your income and reliability of your profession i.g. if you are Dr then there are good mortgage rate for you. So that level of professionalism alwayse attracts big mortgage company to lend you money, because they think that you will pay the money. JUST REMEMBER it is hard to obtain loan without a purpose, banks arent sure what you are going to do with the money and it not secure or anything, they might refuse you, if they refuse then this will damage your credit history. Credit cars are very good at building up your credit history, but they are very risky, because they have very high interest, like upto 25% APR, it is very hard to keep up to date with Credit Cards requirement, and they are very smart, and they only make money when you miss payment or you go over limit, this is where they bring in extra charges, this will ruin and gives you a bad credit history. To build up credit history, try to make small purchases on credit, and pay on time, where the interest are much lower than those of credit cards, and this will eventually build up your credit history. I HOPE THIS WAS OF SOME HELP FOR YOU.
4. You are still going to need a down payment if you get a rent to own house. Usually about 2 to 5% of the asking price. It is up to the seller. Do you have any money saved? Also, with little to no credit history, I think you would have a hard time convincing an owner to let you rent the place with the intention of getting a mortgage in a year or 2. With little to no credit, you would have a hard time renting an apartment without giving a larger deposit or having a cosigner.
5. The main thing to have in this case is a job that you might be able to prove for the last 2-3 years. You should also have enough for a down payment. Having those two things you might try a lender that use alternative things to establish credit. The following items may be used to establish credit, they must be in your name, also you must be able to produce canceled checks or bank statements, also in your name that you have paid these debts for a period or more than a year in most cases. #1 Utility bills such as electric, gas , water or sewer #2 Rental payments (No receipts-canceled checks or bank statements) #3 Any other monthly debts you pay that you pay each month. I hope this has been of some benefit to you, good luck. "FIGHT ON"