SHERIDA STUDWOOD
ExecuHome Realty-443-757-5000
Residential & Commercial Real Estate Services

Credit Issues-OK!

Most folks in the market for a lease option home is doing so because they need a little time to fix their credit. Financing with a mortgage company is either not possible, or the rates and terms are not favorable. Sellers with rent to own or owner financed homes understand your situation and your requirements. That is why they are marketing their home as available for rent to own or offering owner financing.

If you have recently been through a bankruptcy or a foreclosure, it does not mean that all hope is lost. Many mortgage lenders will allow you to finance a home one day out of bankruptcy, even with a foreclosure on your record. They key is in your credit score. If your credit score is 580 or higher, then most likely you can obtain financing if you have only one foreclosure on your record, and you are discharged from bankruptcy.

Rent to own landlords or owners offering owner financing will look at your credit. They do not expect you to have good credit though. They are looking to see how long it would take for you to have a good enough credit score to obtain financing. If your score is currently 510, and you want to get 100% financing, then obviously you have quite a distance to go and it is better to negotiate a two year lease rather than a one year lease.