Rent To Own MN

Rent To Own Real Estate In Shoreview – What If I Have Bad Credit Or No Credit?

Looking for rent-to-own real estate in Shoreview?

The good news is – with rent-to-own, you can still live in a great, permanent home even if you have bad credit or no credit.

Rent to own real estate in Shoreview is quickly becoming a popular way to get into the house of your dreams even if your credit isn’t perfect right now. We’ll show you how it works in this blog post…

Renting and owning are the two most common methods of acquiring accommodation: With renting, you pay (usually monthly) and it’s short term… you don’t actually OWN anything. With owning, you pay back a mortgage loan and it’s long term… you actually OWN your house. There are advantages to both, and disadvantages too.

There’s a third option, which is great for people with bad credit or no credit: If you’re renting right now and want to own your own home, you might feel that you are prohibited because of your credit but rent to own real estate in Shoreview MN is the solution.

By renting to own, you move into a house, pay rent for a period of time, and then purchase that house at the end of the rental period.

Have questions about rent to own real estate in Shoreview? We can help. Click here to fill out the form or give us a call at 612-840-6507

Here’s How To Rent To Own in Shoreview (Even With Bad Credit)

By renting the house first, you get into your permanent dwelling in a credit-friendly way. Sometimes (depending on the situation), some of your rental payment may go toward the down payment or some other benefit – this varies from one property owner to the next.

While you rent, you have time to work on your credit: you’ve got a permanent address and you can work toward improving your credit.

As the rental agreement draws near the end, you use your good credit to apply for a mortgage from a bank, and then you own the house.

The details may vary from one property owner to the next but these are the general concepts involved with rent to own real estate in Shoreview.

There are really great benefits to you: You get into your permanent “dream home” sooner, even though you may not have the credit or down payment right away. And then you have a permanent address that you can use to help you improve your credit, with enough time to really turn your credit around and get a bank loan.

If you’re renting right now and want to own your home someday, rent to own might be the right choice for you.

Want to see what we have available for rent to own real estate in Shoreview? Click here to fill out the form or call us at 612-840-6507

Rent 2 Own Homes Shoreview – what’s the catch?

Looking for a local rent to own house but aren’t sure how it works or if there is a “catch?” Read this article to discover what you need to know about local shoreview rent to own houses…

In the real estate market today, it is very tempting to follow through on one of those ads in the local paper or on Craigslist that are practically screaming the great deal of rent 2 own homes in Shoreview. 

This option can be a win-win for both parties, but is it always the best method to get into a great house?

Sure, you can’t sell your home right now, or if you’re the buyer, maybe you aren’t able to receive a home loan with bad credit.

You could be in a great home that you love and feel a sense of ownership (more than if you just rent a house the normal way) sooner than you thought!

Although, it is always recommended to ask these questions below when meeting with your possible rent to own seller.

Here’s a few important (smart) questions to ask a local Shoreview rent to own house seller

“What is the length of the option to buy the house?” 

With a rent to own house agreement (also called lease option home) it’s usually two parts. First, a normal rental agreement. Second, the option to buy the house at a pre-determined price at a date in the future. Usually the timeframe is a minimum of 2 years.Anything less and you may not reach the credit score goal that you’re aiming for to purchase the home. You need this time to weigh your options and to see if things are looking up for you in the future. Of course the longest option agreement timeframe can be the best for you… to give you more time to get back on  your feet credit wise or financially so you can get a traditional home loan.

“How much of my rent will be put toward my purchase price?” –

You can read horror stories all over the internet about how some tenants were strung along thinking that they were paying a higher percentage than what they actually were for their future home among other factors with this option.Ask the seller!Recent federal laws have made providing “down payment credits” from your monthly rent very hard… if not illegal in some areas and situations. Usually the monthly rent on a rent to own house in Shoreview is a bit higher than the monthly rent on a non-rent to own house (because you’re paying for the chance to purchase the house at a pre-determined price which ties the seller down as well).  So just make sure to ask the seller if any portion of the rent is able to be contributed toward the purchase price if you do decide to purchase the house when the option is up.

“Who is responsible for repairs and damages on the property?” –

This will be depend on the agreement.  It can really vary.Generally, you as the renter are responsible for general maintenance and upkeep… and for minor things (the first few hundred bucks in a repair). But if it’s a larger repair that wasn’t your own fault… often times the house seller / landlord is responsible for the remainder of the repairs after the first few hundred. Again, this varies with every seller.If you’re working with us on looking for rent 2 own homes in Shoreview… we’ll walk you through how our rent to own program works and answer any of your questions anytime.

“If I’m not able to reach my goal after the option period, can I extend?” –

For tenant buyers who work with us… we’re usually very flexible in working with you to help us both reach that ideal end goal… of you buying the house! :-)As long as we can see that you’re on track to make things work… and the extension makes sense for both of us… we’d be happy to work with you on making your dream of home ownership a reality.If your future seller is honest and fair, they will give you this option. It’s always good to have backup.  Do your homework and make sure you talk to the seller of the house FIRST and ask them these types of questions before you sign on the dotted line.

“I don’t have the best credit score. What do I need to do to lock in this home?” –

Again, any reputable Shoreview MN rent to own house firm like The Antonov group will help give you resources and connections to help you increase your credit score while you’re renting the home from us.This may include a referral to a reputable and honest , Shoreview mortgage broker… credit counselor… or even our own internal guidance along the way may be an option.  Of course we realize that many of the tenant buyers who work with us on getting into a Shoreview rent to own house have bad credit. That’s OK.  We’re experienced in working with that situation.But as always, we have to protect our investment as well and we’ll only work with a tenant buyer if you show that you’re committed enough today and a safe enough bet that you’ll consistently pay the rent on time and have a great chance of actually qualifying to purchase the home when the option agreement is up.

Last, but definitely not least,

“May I take a copy of the rent to own agreement to my lawyer?”  –

The answer should always 100% of the time be “YES!”  If you’re working with a landlord / seller of a rent to own house here locally that tries to guide you against running your agreement by your lawyer or CPA (or other trusted advisor) you should RUN THE OTHER WAY.Nothing in the agreement should be hidden or glossed over. There are some really important elements in a rent to own / lease option agreement that you really should be aware of… and we want to walk you through the agreement line by line before you sign, so we’re both fully on the same page and can go into this with confidence and trust.So, make sure that you do take some time to review the agreement to make sure you understand it and how it works.  Any reputable rent to own seller will help you understand the agreement and encourage you to run it by a trusted advisor of your own.

So, What’s Next? Seeing Available Rent 2 own homes in Shoreview

With these six tips, it should be fairly easy to weed out the good sellers from the shady ones.

It’s always harder to find the better ones… the reputable ones… with REAL rent to own homes with a great seller behind them.  When you do find a great rent to own house seller, you won’t be sorry that you went the rent 2 own route like so many others do.

So, your next step may be to dive in and see available rent to own homes in [market_city] [state] right?

If you haven’t started your rent to own / lease option search… START HERE!

Simply fill out the short form on that page and start your search to see what we currently have available.

Our rent to own houses in Shoreview tend to get snapped up fast… so be sure to get on our list and open the email alerts we’ll send from time to time when a new rent to own house becomes available.

Get On Our Local Shoreview Rent To Own House List Here >>

Also, if you’d rather chat with someone about our program or about your situation… call us anytime at 612-840-6507 or shoot us an email through our Contact Page.

We’re here for you and we look forward to working with you ?

Do I Earn Equity With A Rent To Own Agreement? – Shoreview Rent To Own Program

This question comes up again and again… and honestly, the answer this question has changed in recent years based on new laws enacted that affect what a home owner can do when they’re selling their house under a rent to own agreement.

One of the big benefits of owning a house is that you (hopefully) earn equity as you make payments and pay down the mortgage.

One thing many home owners don’t take into account is that really during the first 5 years (or more) the majority of your mortgage payment to the bank is interest… and very little of your payments for the first 5 years actually goes to pay down the principal and earn you equity.

But on the flip side, the 2nd half of your mortgage is usually where the majority of your equity is earned since most of those payments go to the principal.

So how does it work with a rent to own agreement?

When you do a lease option / rent to own home in Shoreview there are various types of arrangements you can choose to take… but the most common is this:

  1. You find the rent to own house you like and apply
  2. You and the rent to own house owner agree on a monthly rent, a “move in” type fee that basically pays for the privilege to have the opportunity to purchase the home late, and the price of the purchase at the end of the rental agreement if you want to buy it.
  3. You move in and pay your monthly rental payment and treat the house great (since you may be owning it someday).

In the old days of lease options / rent to own agreements, a home owner was allowed to let a portion of the monthly rental payment be applied to the purchase price as a pre-paid down payment.

This was great for everyone!

It helped the tenant buyer earn money off of the purchase each month they made a payment… and it helped the house owner sell the house more often at the end of the rent to own agreement since now the tenant had some “equity” in the deal.

But in recent years a bill was passed in Washington D.C. called the Dodd Frank Act that has placed restrictions on rent to own programs… and has limited the ability to apply rental payments to the end purchase of the home.

But There Is Still Opportunity To Earn Equity With A Rent To Own Contract

One of the great benefits of renting to own a Shoreview house is that you get the ability to have the home seller agree to sell you the house for a price you agree upon today.

And the beauty is… if the market does really well during your rental term and the house goes up in value a lot… the seller can’t raise the price on you.

So whatever home value growth happened during your rental term over and above the sales price… that’s your equity!

Now, is there a guarantee that the value of the home will go up and you’ll earn equity?

No, but just make sure that when you’re negotiating the rent to own agreement that you really do a bit of research and see if the area the house is in has a good chance of increasing in value or not. Then base the purchase option price on that.

Before we wrap this article up… you may have the question of whether you HAVE TO buy the house at the end of the rental term.

The answer is no. If you decide you just don’t want to (or can’t) buy the house at the end of the rent to own agreement… you can just continue to rent if the owner will allow it or you can leave. You’re not bound to purchase the house. However, the seller is bound to sell you the home at the predetermined price as long as you followed the contract terms (i.e. – you didn’t miss payments, you weren’t evicted from the house because of a breach of the rental agreement, etc. etc.).

If you’re looking to get more info about our local Shoreview Rent To Own Homes Program… simply give us a phone call at 612-840-6507 or fill out the form on this website to see our current LIST OF AVAILABLE RENT TO OWN HOMES here >>

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