Gomez Real Estate Solutions, a creative financing company based in Southern California, specialize in assisting potential home buyers that, at this time, can not qualify through conventional methods.
"Many have the miss-apprehension that buying a home will overcome or fix a bad credit situation! They go from mortgage broker to mortgage broker looking for a loan that does not exist," states Gomez.
"The bad credit situation has to be fixed first before qualifying for a home mortgage loan, and not the other way around. Rent to own home programs provide that fix!"
"Beneficiaries from a rent to own home program include those that are recently divorced, suffered bankruptcy, or where FICO credit scores are too low."
"Rent to own home programs, also know as lease options, are unlike regular mortgages because the applicant does not have to qualify for a loan."
"The first focus is on the ability to make monthly lease payments. As most are making rental payments already this is not much of an issue. The second focus is on the future potential for purchasing the home," continues Gomez.
"If there are bad credit issues to overcome, this can be worked on, while living in the new home. Over time, most credit issues can be corrected."
"Rent to own home or lease option make ideal alternatives for the self-employed, compared to traditional means of home ownership."
"The lease option rent to own home program original agreement states the purchase price the day the tenant moves in, and doesn't change. Any increase in the value of the home belongs to the tenant when the loan is closed."
"Typically, with a lease option monthly payments are less than it would cost to own the same home. These monthly savings can be put away, and used to increase the down payment at the time of your purchase."
"Depending on the situation, a tenant can occupy the new home in just a few days or a move-in date can be scheduled around any current living situations."
"A minimal down payment is required, or down payment assistance is available if needed. The down payment, and a monthly rent credit, will be deducted from the purchase price of the new home, reducing the amount of money needed at closing."
"Rent to own home programs help tenants by improving their FICO score and they can look forward to home ownership in a relatively short period of time," concludes Gomez.
