Renting A Home Pros And Cons

Even if a potential buyer is ready to start renting, his or her credit score may not be. If the potential buyer has been renting an apartment since the foreclosure and loss of the home they were paying a mortgage on, then their credit score probably hasn 't gotten much better. In fact, the renter’s credit score probably dropped a bit lower. Renting an apartment does not help one’s credit score. In a perfect world, getting payments in on time would be enough to guarantee one’s ability to “rent to buy”, but alas, it does not. The damaged credit from the foreclosed house most likely took yet another hit when the renter began renting an apartment. I was disappointed when I called around in my area and viewed various apartments, only to find out …show more content…
As for the pros, there are a few. Firstly, the renter wouldn 't have to get a loan from the bank immediately. With the possible bad credit from foreclosing in the past, a “rent-to-own” home is relatively lower risk toward one’s credit score than taking out a full mortgage, not being able to pay, and having the foreclosure stain one’s credit score further. A buyer, if the contract is in their favor, can pay on a house bit-by-bit and eventually be rewarded with a house that is paid off, and not at risk of being taken by a credit union or bank if the buyer can’t pay. Furthermore, a “rent to own” home, if the contract is right, will not bankrupt the renter if accidents happen. For example, with a good contract, if there’s a leak, then the person renting out the home must fix and pay for it, or reimburse the renter for paying for it. Accidents that happen to the house or appliances that come with the house may be covered in the contract and not have to come out of the renter’s pocket. Simple renter’s insurance would basically guarantee that the renter wouldn 't have to pay too much in terms of keeping the house up while trying to pay for the house. If one is strapped for cash, yet desires a home, a “rent to own” option may be the best