What does someone need to qualify for rent-to-own?

We all have heard of this several times: renting is synonymous to throwing the money away. Rent-to-own is the process that merges the positive parts of both renting and owning a property. Though not very tempting for fast home buyers, it’s still a good way to own a home. As a buyer, this process will provide you with more time to clean up your credit issues and save you from making the down payment necessary for mortgages. Most of the times, your payable monthly rent is divided into two parts – one is your actual rent and the other portion goes toward future purchase of the home you’re renting. It’s important to note that everyone doesn’t qualify for a rent-to-own agreement. The seller needs to be ensured that you’ll be eligible for a mortgage after the contract expires. This provides the guarantee that s/he can sell the house to you at the appropriate time. In this post, we’ve collated some common qualifying criteria required to enter into a rent-to-own contract.

  • Income: Proven income is a crucial factor for entering into a rent-to-own agreement. Ideally, a seller looks for two key factors: you can afford to pay the monthly rent amount throughout the tenure mentioned in the rental agreement and stability of your income that will be required by the lenders to approve you a home loan. Therefore, it’s better to show up prepared with your bank statements and a couple of year’s tax returns in case you’re self-employed.
  • Credit score: A certain credit score might not be required to enter into a rent-to-own contract but high enough credit score assures the seller that you’ll avail a loan easily when the rental agreement expires. credit-rating
  • Personal history: Apart from checking your credit history, in most of the cases, your tenant history and/or a background check will be performed by the seller. If the check reveals that you’ve had any legal problems or criminal records, you are most likely not to qualify for a rent-to-own agreement.
  • Age: Almost every state needs you to be of minimum 18 years to enter into any legal agreement. Additionally, there could be certain age requirements in case the house is located in a community comprising of active adults or seniors only. These communities generally allow residents of minimum 55 years and above. In such cases, the seller won’t be able to make the contract if you don’t fulfill the age requirements of the community.

Entering into a rent-to-own agreement allows you to check out the house and the neighborhood as well. You may also finalize the sales price and applicable terms upfront as that’ll help you purchase the house within a few years down the line and probably, at a price that’s below market rate. So, if you aren’t in as much a rush as fast house buyers, rent-to-own is a good way to buy the property.

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Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
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Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
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23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
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I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
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12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
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19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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