Buying a home is now becoming harder than ever!
Banks are getting more and more strict regarding who they’ll give financing to, and many people (even with pretty good credit) are discovering that they just don’t quality. Even those who do qualify are faced with the daunting task of saving up a considerable down payment in order to afford their next home.
This leaves people in a catch-22 situation: They can’t afford to buy but renting costs too much as well.
Fortunately, there’s a great option for prospective homeowners and this option can put you into a home even if…
- … you have bad credit or the banks have said “no”
- … you don’t have enough money for a down payment
- … you just want to try out a home before you buy it
- … you don’t want to deal with the banks
- … or any other prospective homeowner who wants access to a wider selection of potential homes to buy
If any of these describe you then you’ll love this next concept.
Rent-to-own homes in New York!
That’s right: Rather than saving up a huge down payment and using your credit to buy a house, simply rent that home until you own it! It’s the perfect hybrid approach to home ownership that is accessible to so many people!
Rent to own homes are perfect for people with bad credit because it allows you to get into a home and eventually own that home regardless of your poor credit score.
Rent to own information to buy New York homes with bad credit
If you’re interested in rent to own homes in New York, here’s the information you need:
Choice: There are rent to own homes for every size family and every income level in New York. Therefore, you can choose the home that fits your needs without having to give anything up. Be sure to choose a home that fits your needs now as well as a few years down the road (since your intention is to stay in the home for a few years).
Flexibility: There are many different ways to configure a rent to own agreement. In some cases, you pay the market rent plus a premium and that premium goes toward a down payment for the home. In other cases, you simply pay market rent and then you need to get a mortgage at the end of the lease period to purchase the property. Fortunately, there are many ways that the agreement can go, so you can work out the best solution for you.
Long-term: Unlike renting (which is has short-term leases of month-to-month or year-to-year), rent to own homes are often longer — perhaps three to five years on average — in which you’ll rent the home until you choose to buy it.
Proof of income: Often, your credit score plays a much smaller role in determining whether or not you can get into the property; what is often more important is proof of your regular income. If you have a job that gives you a steady paycheck, that’s your best option for securing a rent to own home.
Time: One of the most important aspects of rent to own is the time factor. Since many people choose the rent to own model because of their bad credit, the time you have in the property can actually contribute to improving your credit: You’ll have the same address for that period, plus your steady income, and if you use that time to pay off debt and keep up your payments then you’ll enjoy clean credit when it comes time to get a mortgage.
Looking for more rent to own information to buy New York homes with bad credit? We can help. At People's Real Estate Consulting Corp., we’re focused on helping rent to own homeowners connect with homes that they love. Contact us today at (516) 4909063 or by filling out the form to learn more.