Profile picture for Emmy85

How to rent to own or buy house with bad credit?

  • September 28 2011 - Eagle River
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Answers (30)

Profile picture for sunnyview
Don't listen to the hard money bozos like Corey or anyone who makes promises so they can profit from your bad credit. Find out how to fix your credit, address the areas that bring your score down and then walk into the home marketplace ready, willing and able to buy.
  • February 11
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[spam]

  • February 11
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What do I do
  • February 09
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Profile picture for melissahayden28
I want to rent to own what do I do....?
  • January 17
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Profile picture for wetdawgs
"I can be paying rent but will be buying it"   Ah, the myths of "rent to own" continue to be perpetuated.   Would life be great if it were that simple.  It isn't.
  • January 17
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Profile picture for sunnyview
"Could u help me out..."

Yes! I can help you. Don't rent to own a house. It is a mistake. Fix your credit, make a budget and save for a small down payment or emergency fund before you buy. No need to thank me, I am happy to help.
  • January 17
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Don't do it.
  • January 17
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Profile picture for carr ruby1980
1980carr. I'm current living in a apartment n I want to find a house that I can be paying rent but will be buying it. Could u help me out
  • January 17
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Profile picture for o barbaraann

I am on SSD and looking for a home to rent to buy. My credit is poor and I do not have the money to fix my credit. I am so tired of paying someone else for rent I have sever anxiety and severe depression. And with my landlord not fixing things properly this really gets me upset I want to be able to be stress free and I am also looking into getting me a pet to help me to happy and to keep me calm.



  • January 04
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Profile picture for sunnyview
@Joy You need to call your lender and explain the situation. If the situation is temporary with your husband's income drop, they may be more willing to work with you on a long term solution.

However, if you cannot pay due to your change of circumstance, I would ask them if they will allow you to short sale or do a deed in lieu to try to get your financial house in order. 

Don't keep spinning hoping for the best. Find out about your options from a local attorney as far as the house goes and your other bills. They may be able to make suggestions on how to approach the lender and your other creditors. Sometimes if companies know that you are considering bankruptcy due to financial stress, they are much more willing to work with you.
  • September 04 2014
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Profile picture for JoyTaylor3
Ok I am in trouble because my hubby has been out of work since October an has been out of work off an on for a while!  He went through back surgery after a work place injury an we got a lawyer to force them to pay.  He went through months in 2013 without pay at all because of it.  He finally got paid for his short term disability from his former employer then they put him back to work.  Then in October he had a medical emergency on the job an lost his job because of it.  He is getting ssdi now but it is way too little an too late!!!  I am on the verge of losing my home an I don't know what to do!  My mortgage company is working with me partially but we have a lot of medical bills (I have had 8 surgeries myself since 2006)!  I am behind on everything an one of my medical bills is being garnished from my wages.  PLEASE TELL ME WHAT I CAN dO?
  • September 04 2014
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Profile picture for sunnyview
No, in your situation I think rent to own is a terrible idea. Work on your credit, concentrate on your family and do what you can to save for a down payment or emergency fund BEFORE you buy.

Buying requires a plan and stretching to buy with one on the way is dangerous financial territory.
  • July 31 2014
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Profile picture for muddygirl3xxx
Me and my husband have 3 kids and one one the way little to no bills no credit cards but my husband decited to fill bankrupt on his truck and a gas card that was stolen and charged on rather than paying them his attorney talked him in to this to lower our monthly payments but we didn't fill together and I have 2000 in collections for medical bills from my daughter years ago that should have been covered by my insurance but didn't come up until it was to late to be re summited. we had a friend offer us a home no down 1300 a month 2800 sf and little to be done to it 175,000 total insurance included monthly it's assessed for 185,000-194,000 I'm not sure we can be approved because of the bankruptcy but I've heard of the rent to own do you think this would be a good idea we pay 1200 a month in rent now weve been here 2yrs and would like to pay our debt and finance  after 3yrs 
 
  • July 31 2014
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Profile picture for sunnyview
Rent to own is not a good option for people with poor credit. If you want to buy, you should save for a down payment, address your credit issues and pay off the debts you can before you buy.

People may think that an apartment is not a home, but they are wrong. Home is where you make it. Living in a house that you do not own or cannot qualify for due to impaired credit is not better than paying rent. If you want to garden now, look into community gardens where you can have a plot of your own while you get your buying plan together.

My advice is not quick or sexy, but it is the truth. Work on your credit first. You can address credit issues and raise you scores for free. Try the myFICO forum for ideas. Make a budget and save for a down payment. You need some reserves to close escrow, for a down payment and a small emergency fund for repairs after you buy. Learn as much as you can about buying. Lots of information is available online and right here on Zillow

Any one can dream, but the dreams that come true start with a plan.
  • May 05 2014
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Profile picture for BobbyHarris3
ok I am going to try posting here  again I didn't see my post from earlier this morning. I was checking in to see if anyone has any ideas I am living in the state of North Carolina and I live in a city of Statesville not very big city like a major city and I am in turmoil as I heard rent to own are in problems right now people are getting kicked out of the homes because the owners did that and some agencies too and are just taking and ripping off money from people who were thought to have made payments to buy the house only to find that owners and agencies brokers have fooled them they hide the papers that they still own it and they are just getting the money to pay their debts on property and then kick them out and take it back as owners still !!!! that's stupid. and I for one have very poor credit and I get income each month but am living in a apartment where I cannot call it home because its not home its a apartment. I was told I should get into a home to own and call that home and have freedom to do whatever I like and sit outside in nice air and stuff plant flowers or something as I have green thumb. and do more then just that. but Statesville North Carolina doesn't have anything like that rent to own by an agency or brokers here and there is hardly anything like this around here I have no contacts all my relatives are deceased and my father deceased and I have no where to turn if anyone has an idea or some contacts for a home to own even if people like myself have bad poor credit or something I like to see if there is someone willing to work with me on this and find a way around it and be able to do something, any thing will work for me just drop me a email and let me know many many thanks
  • May 05 2014
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Profile picture for lforgey
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  • April 21 2014
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Hello, 

I understand what your going through. I have been there myself. One company that has a  rent to own type program is Waypoint homes. I personally have not worked with them but they do have a rent to own a program where part of your rent applys to your down payment when you get ready to purchase that actual rental home or one of their others. Its worth looking into...Good Luck and Happy New Year, I hope this helps.
  • December 30 2013
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Profile picture for starkscleaning
Hi my credit score dropped from a six twenty to a five forty two and we still want to get into your rent to own program. I am self employed and me and my wife are paying fifteen hundred a month for rent, I am a bit tired no.. Iam alot tired of giving away my money. Can you contact me and help us please?  I have filled out my profile with all information that was asked. I hope to hear from you soon. Thank you
  • December 30 2013
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Although we do not like to be judged based upon a credit score determined by 3 agencies (Experian, Equifax, Transunion) our FICO shows how responsible we are.  When I was younger I would sometimes forget the due date on a Macy's card, I was not responsible.  And it's understandable to forget.  However, if this occurs every month for 6 month straight, you could understand why your score would be low; would you want to lend someone money if they paid 6 months late? 
And it's not like you can't fix this problem. . ,you can Trust me. 
  • December 04 2013
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Profile picture for Just a SCORE
People need to understand a credit score DOES NOT tell you who that person is or isn't.  It's just a score, it doesn't tell you when a person has had a illness or a parent got ill and they chose to take care of their ailing parent.  It does not tell you that their car got stole and insurance didn't cover it all.  It doesn't tell you that someone lost their job despite when they had a job their credit was good.  It doesn't tell you the person decided to step out on faith to start a business and works hard to maintain that business. To me a credit score is a big mess. 
  • December 04 2013
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  • June 14 2013
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Profile picture for GeraldineDickerson
I was once in this situation and what I did was to ask the help of a company [deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines] to help rent a place even with bad credit. They don't do credit checks and they only ask for minimal requirements. They will help you get approved and they will get you approved!
  • May 08 2013
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Profile picture for sunnyview
Even small single property landlords have the ability to check credit at this point. Those that don't do it are taking a chance with a large investment. It's like an employer not checking employee references. Not smart.
  • September 30 2011
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I know for a fact that a lot of landlords ( not professional mgmt. companies) don't do credit checks. They don't have the capabilities to do so. Cash is king.
With regards to the statement made by Keith Cook, the owner does NOT need to own the property free and clear. That is what a wrap is. Buying a property that is already mortgaged. Again, if you go this route, hire a professional that understands how a wrap or rent to own actually works. As you can see, not everyone does.
  • September 30 2011
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Profile picture for sunnyview
In my area, a credit check is an essential part of all tenant screening along with verification of employment. Bad credit in fact can impact your ability to both rent or buy the property that you want. No one wants that risk unless they cannot rent or sell to someone with good credit
  • September 30 2011
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Buying with bad credit is very difficult - unless you find a owner wiling to finance you - most likely with a large down payment. You will need to locate a owner who owns the property free & clear of any existing mortgages.

I have had very good luck with rent-to-own sales. ( aka Lease with option to purchase) There are several factors that help determine how this type of purchase will work. 1) Price 2) Down Payment 3) length of time of the option 4) Rental amount 5) amount of rent ( if any) that would be applied towards the purchase price. These types of sales work great if for whatever reason the buyer is not able to finance the property now - however they will be able to finance the property or resell the property within the option period. IF treated right this is a great way to get into real estate. As in many real estate transactions it would be advisable to consult a Realtor and or Attorney to make sure the paperwork is prepared correctely. Make sure you receive a Title Policy.  In Washington State you would be entering into a Lease Agreement, Option Agreement and  a Purchase and Sale Agreement. Best of Luck.

  • September 30 2011
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Profile picture for ezlease
Most companies will advise you that 'credit' doesn't have anything to do with renting.
That line of thought is very outdated and whomever believes this probably hasn't tried to rent an apartment in years !!!....
  • September 30 2011
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I would try talking with a lender to determine what you can and can not do. Most every bank has a mortgage division. I would try your local bank first and then from there, they can suggest who else might be able to assist you. I have many buyers who have had difficult credit issues. In working with a lender, they were able to overcome them and buy. You never know until you try. It doesn't cost you anything and they are there to assist you. They are the specialist in their field and know what it takes to get you into a home. Thank you for your question.

  • September 28 2011
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You will need at least 20% down, and patience. I don't suggest rent to own, because they never in my experience have worked out to anyone's satisfaction.
A better route is to find a seller that is willing to wrap their mortgage. In todays tough economy, that shouldn't be too hard,but I would advise you hire a Licensed Sales person to help you to understand the potential pitfalls and work through the process so that all your "bases " are covered. Many people will say don't go this route for a variety of reasons, but I have seen many wraps come to fruition and BOTH parties walk away happy. Good Luck
  • September 28 2011
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As far as renting goes, credit score is 1 of several factors that landlords look at in potential tenants. They also look at past rental activity, income eligibility and whether you have pets. If you have no pets, have adequate income to cover the rent and your other payments and very importantly, can provide a good rental reference from your previous landlord, most landlords can overlook the low credit score especially if you can explain the circumstance that led to the low score. I have had landlords who have not asked to see credit information if all of the other things checked out. Sometimes it's a good idea to meet with the landlord first and explain your situation and put on a good first impression with them. Be upfront from the beginning. It shows them that you are an honest person.
  • September 28 2011
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