I have some credit problems, and I an interested in obtaining a mortgage, I have tried to get one but they tell me I need atleast a 580 credit score, I have a 540, so I want know will it be smart to rent to own, how does it work and what will I need and who can help me with this process, I really need to move I live in some apartments that I hate. Please anyone with real advise help!!!!
2006-08-07 02:48:58 · 8 answers · asked by ttbird117 3 in Business & Finance ➔ Renting & Real Estate
I have the same problem not with credit, but with the way real estate prices in New Jersey has become so ridiculous. I would suggest to you is that you rent until you pay all of debt down. A mortgage company will feel more comfortable loaning you the money if you have no debt or a minimal amount. Currently, I assume you are in a lease. I would not break the lease because they will try to get you with all sort of fees for breaking the terms. If you can I would stick it out at the complex you hate. If necessary I would cut down on some of your costs in order to pay off your debt so your slate is clean when you go in the next time to apply for a mortgage. If possible I would suggest putting at least 10% down so you qualify for the 80-10-10 mortgage package. This is broken down into 80% Mortgage: 10% Home Equity and 10% down. I wish you luck you can do it.
2006-08-07 03:00:16 · answer #1 · answered by ALBPACE 4 · 2⤊ 0⤋
2
2016-09-09 21:08:46 · answer #2 · answered by Dante 3 · 0⤊ 0⤋
It depends on the deal. Some rent-to-owns are fair, while others are not. I'd continue to rent while I took steps to improvement my credit score - or continue to look for a mortgage company that will finance you - you will have a higher payment as the interest rate will be higher - but you can always refinance in a few years - and improve your credit score in the process. Rent-to-owns can be hard to get out of and there are plenty of people out there that will cheat the %^$&# out of you with a bad deal.
2006-08-07 03:00:14 · answer #3 · answered by bigsharkbait 2 · 0⤊ 0⤋
Did is not a good move. You end up paying more than 5X the retail price of an item. I would suggest a secured credit card & make sure you pay a bit more than the monthly balance, but not all the monthly bablance; they don't like that, they want the interest; after about 6 months to a year, your credit score should go up. DO NOT keep applying for cards, that brings down your score.
2006-08-07 02:56:19 · answer #4 · answered by shearnerve 2 · 0⤊ 0⤋
I am a former manager of rent to own. Rent to own does not effect your credit either way. I used to write letters for my customers to help them if they wished to get credit somewhere local. Rent to own does not check or report your credit to the agencies. By the way, it's really not a good way to but things either. The expense is very large vs. what you get and you get no positive impact for the added expense. Try 90 same as cash purchase plans if you need something and try a secured credit card with a $1000USD limit to build your credit. If you are in the USA it takes a min. of six months of paying on something to effect your credit.
Tom
2006-08-07 03:10:06 · answer #5 · answered by Thomas 4 · 0⤊ 0⤋
As long as you have an agreement drawn up through a lawyer it is a very good option the rent you pay, or a large portion of it, goes as payment on the house.
2006-08-07 02:54:35 · answer #6 · answered by kiss 4 · 0⤊ 0⤋
you can rent, its a LOT more expensive though. a 1000 laptop goes for almost 3000 in rent to own
2006-08-07 02:53:09 · answer #7 · answered by digital genius 6 · 0⤊ 0⤋
my husband, JOE, is a loan originator and helps peopel in your situation quite frequently. He gives free debt anaylisis and can tell you the ins and outs of contract purchasing. 260-672-3373
2006-08-07 02:54:34 · answer #8 · answered by Demure D 2 · 0⤊ 0⤋