🚀 go-pugleaf

sp wrote:
> Is going thro' this "rent to own" program makes a renter easier to get a
> mortgage?  Any fianancial insttitude backing this program?
>
> Susan

It should help. First, if you make all your payments on time, you will
start to build a good credit history. A bank should take this into
consideration. Second, the portion of the rent you pay which is
credited toward the purchase price of the house, in essence, increases
your down payment (read the article again). The bigger your down
payment, the less you have to borrow. This means you have more equity
in the property. Banks like that.

However, if you do not make all your payments on time, your landlord
will probably report that to the credit bureau, and the bank will find
out. This will further damage your credit. As I said before, understand
and follow the terms of your contract.

To my knowledge, there are no financial institutions backing this sort
of program. This type of program exists primarily because prospective
tenant/buyers have damaged credit and are unable to qualify for a bank
loan at the present time. There are property owners who are willing to
take a risk FOR A POTENTIAL PROFIT, and they offer their properties on
a rent to own basis. Every deal, every contract is different. Just like
every other facet of life, there are honest and dishonest people (both
tenant/buyers and landlord/owners) in the rent to own arena.

Everyone, please understand, THIS AIN'T CHARITY. There is risk involved
for both sides. If anyone is looking for for a handout, you're setting
yourself up for a fall. If you are a person with damaged credit and
unable to get a mortgage, ask yourself this question; "If I owned a
house as an investor, would I be willing to let me have possesion of
that house?" If you can honestly answer that question with a yes
because you are taking tough, positive steps toward repairing your
credit, then pursue the rent to own path. If you are just looking for a
"break" without taking any positive steps on your own, keep renting
because an honest and smart tenant/landlord will turn you down just
like a bank. Then, what are you left with?