Bad credit & no credit check rent-to-own homes in Dallas TX
If you have been living in a rented accommodation in Dallas TX for a long time, the thought of buying a no credit check rent-to-own (lease purchase or lease option) home must have crossed your mind. Rent-to-own financing arrangement looks great when you can’t obtain a conventional mortgage, but the question is: Does it really suit your home buying goals?
May be not! If you have bad credit stopping you from buying your dream home in Dallas, you should probably consider other financing options. Here at Shop Owner Finance, we can help you learn how to buy any Dallas TX home you want with owner financing. In this guide, we will discuss which alternative financing you should choose based on their advantages and disadvantages specific to your situation. But you can jumpstart your home buying journey by filling out the form below. A qualified realtor from Shop Owner Finance will get in touch with you promptly:
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Rent-to-own (Lease Purchase) vs Owner-financed homes for sale in Dallas TX with no credit check
Dallas – Fort Worth area is a popular housing market for credit-challenged home buyers. It’s easy to buy a rent-to-own home for sale with bad credit in Dallas. However if you are already living as a tenant, you should definitely consider owner financing also. Here are a few things that make owner financed homes better than rent-to-own homes in Dallas TX:
- A rent-to-own agreement doesn’t guarantee that you would be able to buy the home at the end of the lease people. A lot of things can go wrong. It includes fresh lien or judgment on the title. Many rent-to-own schemes have been exposed as scams for this reason. On the other hand, owner financing in most cases is a legitimate ways of financing a real estate purchase. The reason is that you become the legal owner of the property on the closing day.
- You will in most cases pay a higher amount of rent than the usual rent for the comparable property in the same location during the lease period in a rent-to-own arrangement. In an owner financing arrangement, you don’t pay rent, but monthly installments to the seller. In our system, we help you learn how to pay your monthly installment through a note servicing agency. It makes your payments similar to those in a traditional mortgage.
- You pay a non-refundable ‘option money’ at the beginning of the lease period. You will not get this money back if you back out or anything goes wrong. You pay a down payment instead of option money. The down payment could be anywhere between 15% and 20%. The down payment is applied towards the purchase price.
- In a rent-to-own arrangement, you live as a tenant in the property during the lease period, so there will be more or less the same types of restrictions that landlord usually impose on their renters. However when you buy a home with owner financing in Dallas TX, you can customize the home any way you want to make it fit your personality and needs.
- Most rent-to-own loans are short-term, meaning that the lease period will be for 3-5 years. You either have to get a mortgage to buy the home at the end of the lease period or pay cash. In case your credit score didn’t improve and you couldn’t obtain a mortgage, you will end up losing the option money. You also lose all the inflated rental payments that you made in hopes of buying the home. However, you can pay off your owner financing loan in up to 30 years just like you can in a traditional mortgage.
- In our system we help you learn how to make an owner financing arrangement in a way similar to a traditional mortgage. You don’t necessarily have to make a balloon payment or pre-payment penalties.
- Rent-to-own contracts are very complicated. For example most home buyers don’t understand the difference between lease-to-option and lease-purchase. Some rent-to-own contracts might make you legally obliged to purchase the home at the end of the lease period instead of giving you the option to buy it. These contracts impose severe financial penalties in case you can’t afford the home at the end of the lease period. Though owner financing contracts are also customizable, we help you learn how to get the best terms for your home purchase. These terms are more or less similar to a conventional home loan, the only major difference being that instead of a bank, the seller (or an investor) finances your home purchase.
Though both rent-to-own and owner financing enable you to buy with no credit check or bad credit, you should pay attention to the legal and financial obligations that you would need to comply with. Make sure that these obligations align with your home buying goals.
If you are interested in buying any Dallas TX home with owner financing, get in touch with us today. We will get you started on home buying journey in no time: