Sometimes Buying a Home is Easier than Renting!

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Renting is often thought of as easier than buying a home.  After all, there seem to be all kinds of rentals and lots of options.  You can rent a home, a condo, a townhome, heck even a mobile home.  But some things are very clear.  You have to qualify to rent a home just like you do to buy a home and sometimes that process is more difficult than buying a home. 

 

When a potential tenant applies to rent a home several things have to happen.  Landlords and property managers want an application complete with employment history, rental history, financial questions, and references.  Also required most of the time is a credit history and background check.  

 Credit Score by Experian

Credit history will contain mortgage payment information, revolving credit, joint records and single credit records, among other things that can challenge a FICO score.  If you experienced a short sale or foreclosure, that will show up, too. 

Credit Reports can show late payments, missed payments and more along and these lower your FICO score.  FICO scores can be determining factors for both renting and buying a home and sometimes lower than what a landlord is willing to accept. (photo courtesy of Experian)

 

I've run across landlords who require a 700+ FICO score, end of story.  I can't get past the gatekeeper, aka listing agent, to state my case that maybe someone had a medical issue.  And just maybe everything snowballed.  

 

Recently, I've been working with someone who has a 590 FICO score.  It has been impossible to help them to rent a home, but a lender tells me that they can buy a home.  Their story includes medical issues that led to a bankruptcy.  Since the bankruptcy is four years old, they now qualify to buyer but no landlord has accepted this type of history.  

 

There are programs and lenders that will allow for a buyer to buy a home with a 580 FICO score, with extenuating circumsances, aka medical issues.  There are lenders who will allow a buyer to borrow money if they are seeing that an applicant received a raise and is continuing to advance.   

 

Oh and, there are programs where all you need is 1/2% down and sometimes nothing down.  So if you haven't saved for a downpayment, that's not a problem either.  Closing costs aren't always required either since I can negotiate a contract wherein the seller pays the closing costs.  

 

So if you don't think you can buy a home, guess again. Sometimes it's easier to buy a home than renting! 

 

Bear in mind that some of these programs have income limits, but for the most part those aren't that low.  

 

It's always wise to discuss all of this with a loan officer before looking for a home.  Determine your purchasing power and know all of your options.  Also seek the advice of a reputable credit repair company that can work through your issues without charging you a monthly subscription for their services.   

 

Call me if you are tired of renting a home.  I can help! 

Posted by

Signature

Google plus 1

      http://activerain.com/action/blogs_admin/subscribe?subscribed_agent_id=174467

 

HomeSmart Elite Group                                  

8388 E Hartford Dr., Suite 100

Scottsdale, AZ 85255                                                         

(602) 620-2699   DIRECT

www.AZGreenRealty.com

www.GotGreen.info                  facebook   Google + twitter   youtube   linkedin   pinterest   

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Arizona Maricopa County Scottsdale
Groups:
Posts to Localism
Dedicated Bloggers
Local Expert
Bananatude
Hyper-Local
Tags:
buying a home with bad credit
renting versus buying a home
buying a home with low fico scores
fico scores and buying a home

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
538,482
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Very true, it's a great time to buy. If you can purchase rather than rent you won't regret that decision- lot's of good reasons in this post!

Oct 24, 2016 07:57 PM #1
Ambassador
2,302,041
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

The stringent requirements landlords are imposing are just crazy these days.  I feel sorry for these folks trying to find a place to rent.

Featured in BananaTude!

Oct 25, 2016 01:19 AM #2
Rainmaker
977,460
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Peter Testa .  It's so true and our prices are very affordable here in Phoenix!  

They are crazy Belinda Spillman and landlords tend to get carried away looking for the BEST tenant.  If they would meet some of these folks and hear their stories of things that go wrong they would find out they aren't bad people and medical issues happen.  Thank you for the feature!

Oct 25, 2016 02:00 AM #3
Rainmaker
1,898,824
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Jan - this is very true.  For those with the down payment buy a home!

Oct 25, 2016 04:33 AM #4
Rainmaker
977,460
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thanks for commenting Grant!  We have a grant program for down payment assistance and buyers only 1/2%.  I've done 3 this year!  

Oct 25, 2016 04:35 AM #5
Ambassador
2,770,293
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Jan - Good post. I had no idea that your landlords were that tough - they're a bit easier around here. And while it may be easier to buy than rent, it's also a much better financial decision in most real estate markets.

Oct 25, 2016 05:10 AM #6
Rainmaker
977,460
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Yes Dick Greenberg , landlords can be very demanding.  Wanting higher FICO Scores, no bankruptcies, and max 30% rent to income ratio. The latter is understandable because you want to make sure to get good paying tenants, but the other reasons are a bit much.  Definitely a benefit to owning.  Have a great day!

Oct 25, 2016 05:36 AM #7
Ambassador
1,631,443
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

There are those not responsible enough to buy versus rent, but no question owning is a better wealth builder and cheaper than renting. I have an excel spreadsheet that calucuates the difference.

Oct 26, 2016 07:34 AM #8
Rainmaker
977,460
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very cool Joe Pryor !  It's always a good idea to document those things for the wandering engineers!

Oct 26, 2016 02:56 PM #9
Ambassador
4,167,276
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Good points Jan, I can see why it may be easier to buy than rent.

When a lender has a loan with a questionable mortgagee they can sell the loan, us landlords have yet to figure out how to sell off a questionable lease.

Oct 27, 2016 03:35 PM #10
Rainmaker
977,460
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Bob Crane , that's a new one  'sell a questionable lease!"  So true.  Besides, landlords call all the shots and a tenant gets to live under their repair schedule, their leaky roof, and their rules.  It's very frustrating to hear their stories! Have a great weekend!

Oct 28, 2016 02:21 AM #11
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
977,460

Jan Green

HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN
Ask me about Homes in Scottsdale!
*
*
*
*
Spam prevention

Additional Information