Rent To Own Houses Gives New Opportunity For Aspiring Homebuyers
The financial troubles of sub-prime lenders like New Century Mortgage Corporation has cast quite a pall over the financial markets and prospects to purchase homes with less than prime credit. This has had a dampening affect for hosuing markets across the country but as is usually the case it has been way overblown.
Zero down home loans are still available for credit worthy buyers ( a FICO score of 640 is usually a minimum threshold). There are also a number of first time homebuyer programs available to assist with down payments, counseling and lender referrals.
My Guaranty Home Sales Team in Kitsap County, Washington offers a third alternative for the growing class of sub-orime buyers through our lease to own program. We offer tenants an opportunity to lease own home of their choosing with a firm option to purchase within a two year period. Within that 2 years we work with them to raise their credit scores and take title to the property. After qualifying them for our program we give them a slected list of homes that we determine would be in their price range, allow them to select form that list the home they would like to own and then match then with an investor to purchase the home, lease it to them and grant an absolute option to purchase the home for afixed price at any time within the two years. Getting people into a home of their choice and helping them qualify for the money to purchase it offers multiple benefits for these individuals. It is truly rewarding to help struggling families obtain the home of thier dreams.
Giving renters who would otherwise be excluded from financing to acquire a home is very beneficial to them. But wait,... it is also a very attractive investment strategy. What is does that is so beneficial to the investor is that our method of qualification, incentives and management remove or greatly reduce the "friction points" inherent in the landlord-tenant standard relationship. This is the best way for people who have limited means to get started in real estate investing to avoid the pitfalls of property management, leasing, vacancy and all of the other headaches that real estate investing gurus don't really want to talk about in their high priced investment seminars. By the way, our more seasoned investors are so happy to use our system that they now don't do anything else. Everybody wins in this arrangement.
When I say everybody, I mean cooperating or referring agents too. Think about it. A referring agent can earn income from deals that they are unable to write themselves because of poor buyer credit. That's pure profit. And when we find agents that we like to work with regularly we will enter into a reciprocal referral arrangement wit them, particularly in markets outside our region of expertise in Kitsap real estate, Bremerton real estate, Silverdale real estate and Port Orchard real estate. Rent to own houses can apply to existing Port Orchard homes for sale or new homes in Port Orchard.
Like I say, everyone wins.
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