Whenever a prospective home buyer hears the words "lease-to-own" or "rent-to-own" the think it's an easy way for someone with bad credit to buy a home. That couldn't be further from the truth. While lease-to-own is an option for those with less than perfect credit, a tenant/buyer must still meet certain qualifying criteria. Remember, the goal is to be able to purchase the home with permanent financing as soon as possible. In Texas, you typically have about 6 months to make this happen under a LTO option.
The tenant/buyer must be willing to commit to the program/plan prescribed by the seller and/or program administrator. The National Housing Benefit Alliance LTO program has implemented the following requirements for LTO candidates:
- Begin financial literacy courses.
- Prepare budget/spending plan.
- Complete other required progam deliverables.
- Begin/continue one-on-one counseling.
- Have Affordability Assessment completed.
- Complete LTO application process.
- Find a home and sign the lease.
- Enroll in credit management program.
- Pay your rent on time.
- Improve your credit score.
- Become a home owner.
The process is easy for serious buyers. Preparing for home ownership requires commitment and dedication. The NHBA program focuses on long-term ownership and establishing sound financial habits. The goal is to create successful homeowners and decrease the chances of default and foreclosure.
If you are serious about becoming a home owner but need help getting it together, consider a lease-to-own program that has your best interest in mind. The program should be designed to help you create a step-by-step plan to achieve your goal of home ownership.
Are you serious? Then get started on your journey today!
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