We offer lease-option deals to those who have less than perfect credit and have a hard time finding a way to buy a home. We expect them to get a home loan and cash us out at the end of the option period.
Buyers who need to rebuild their credit during the option period must understand that paying their rent on time wont help.
Its true that scoring company "Fair Isaac" has introduced an "expansion" score based on "non-traditional credit data"... but that does not yet include rental payment history.
The good news is that lenders will often consider a series of cancelled rent checks when they are evaluating a buyers ability to qualify for a loan.
To get a higher FICO score people must concentrate on credit card debt and payments on other loans.
In good faith, when we offer homes for rent with the option to purchase, we must choose people who actually have a chance to be able to purchase the home at the end of the option period.
For your paper trail of ethical conduct, you may want to consider giving your tenants a guide on how to improve their credit so they may have a better chance to qualify for a loan and buy your property.
Heres a guide that you may want to consider...
http://CashFlowInstitute.com/killdebt.htm
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Thanks for your help!
Until next time - Go Forth and Prosper!
Mark Walters~
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About The Author...
Mark Walters is a third generation investor, author, speaker and publisher. He is the Webmaster of
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