Rent-to-own and owner-financed homes for sale in Austin TX
Planning to buy a rent-to-own or owner-financed home in Austin TX because you have bad or non-existent credit? Well, you must be wondering which one of these two options is better. Should you rent a home so that you can own it at the end of the lease period? Or should you buy an Austin TX home with owner financing?
Well, there is a third option - third-party owner financing. It allows you to buy any home listed for sale in Austin with terms similar to a conventional mortgage such as a 30-year amortization period, fixed interest rate, no balloon payment or pre-payment penalties. The best part is you don't need a credit or income verification, so this program is quite different from no-credit-check options such as rent-to-own.
Read on to learn more or explore Austin home listings below. If you find a home that fits your budget and requirements, get in touch with us. We will help you buy it with owner financing:
Rent-to-own vs owner financing in Austin TX
A home is an expensive acquisition, so your number one priority is to ensure that the property transaction is legal. There are two most important things you should look into when buying a home in Austin or anywhere else for that matter:
- A title free of any liens or judgments
- The transfer of the property’s title in your name
If there are any judgments and liens on the property’s title, you won’t get clear ownership of the property. In addition, you should have a property’s title transferred in your name immediately and the title should be recorded with your county’s office.
In a rent-to-own arrangement, you can’t be sure of both things because the property’s title is not transferred in your name immediately. Even if the title is clear of any liens at the time of signing the rent-to-own agreement, the seller may take out a new loan on the property before the lease expires. It is for this reason that most forms of rent-to-own agreements have been outlawed in Texas.
On the other hand, owner financing meets both of these requirements in most cases. Since the property’s title is transferred immediately, you can have the title inspected before buying your Austin home and ensure that it’s free of any liens and judgments.
That’s why when we work with credit-challenged home buyers in Austin, we recommend they consider owner financing as their alternative financing option.
In our system, we take the concept of owner financing a step further.
As you can see, Austin homes are rarely listed for sale with rent-to-own or owner financing options. So what if you can buy any Austin home you want with owner financing? Is it possible?
The biggest advantage of financing your home purchase with a traditional lender is that you get to buy any home you want. In our system, we help you learn how owner financing offers the same advantage. On top of that, you can buy regardless of your credit situation, employment status or nationality.
Why buy owner-financed home in Austin TX
Owner financing in our system offers the following advantages:
Credit repair: Buying a home with owner financing in Austin can help you improve your credit score. Your regular payments will be factored in when credit rating agencies evaluate your credit score based on your monthly owner financing payments.
Overcome credit challenges: Foreign nationality, self-employment, and identity theft are some of the reasons your mortgage application is rejected by conventional lenders. You can buy an Austin even if you are self-employed, a foreign national, or a victim of identity theft. You should be able to arrange for a reasonably high down payment (anywhere between 15-20%) and show that you are a financially disciplined person.
If you are looking to buy an owner-financed home in Austin, get in touch with us today!