Wow! Rent to Own! It gives the family that has lost their home to foreclosure a second chance to regroup, re-establish credit and potentially take advantage of today 's real estate market, while putting those significant lessons learned into practice.
First of all, it 's hard to say that folks in this category have checkered pasts. Sometimes, job loss, illness or other catastrophic event scan thrust families with decades of good financial records into the most dire of circumstances. Savvy lenders are going to look at a family 's situation in a holistic manner. Was the family good at saving? Were they always on time with their bills? How long did it take them before they finally were unable to make payments on their house? Or were they overextended …show more content…
My mom said that when she got out of college, mortgage rates were 13% and fell 3 percentage points in just a year. Just this fact alone lets us know how rapidly rates can change up or down or how high those rates can really get. So if a borrower is in a market where home prices are reasonable andthe rates are as low as 4%, the borrower or "boomerang buyer" is going to want to repair their credit as soon as possible to take advantage of these market conditions. The "rent to own" option is the key.
So what 's good about "rent-to-own"? First, the boomerang buyer might be able to lock in the price of the home at the time of the contract. That way, they are able to take advantage of and lock in home prices in a down or buyer 's market. Next, they can begin the process of acquiring the home, because some portion of every rent payment will go toward payment on the house. Most important, is that this kind of transaction takes time, and the terms of the contract can be in years. During this time, the boomerang buyer is making steady payments on the property and is increasing their credit score so that they can be considered for a loan in the future. Another advantage of time is taking advantage of lessons learned. First, while the boomerang buyer is
First of all, it 's hard to say that folks in this category have checkered pasts. Sometimes, job loss, illness or other catastrophic event scan thrust families with decades of good financial records into the most dire of circumstances. Savvy lenders are going to look at a family 's situation in a holistic manner. Was the family good at saving? Were they always on time with their bills? How long did it take them before they finally were unable to make payments on their house? Or were they overextended …show more content…
My mom said that when she got out of college, mortgage rates were 13% and fell 3 percentage points in just a year. Just this fact alone lets us know how rapidly rates can change up or down or how high those rates can really get. So if a borrower is in a market where home prices are reasonable andthe rates are as low as 4%, the borrower or "boomerang buyer" is going to want to repair their credit as soon as possible to take advantage of these market conditions. The "rent to own" option is the key.
So what 's good about "rent-to-own"? First, the boomerang buyer might be able to lock in the price of the home at the time of the contract. That way, they are able to take advantage of and lock in home prices in a down or buyer 's market. Next, they can begin the process of acquiring the home, because some portion of every rent payment will go toward payment on the house. Most important, is that this kind of transaction takes time, and the terms of the contract can be in years. During this time, the boomerang buyer is making steady payments on the property and is increasing their credit score so that they can be considered for a loan in the future. Another advantage of time is taking advantage of lessons learned. First, while the boomerang buyer is