Financial Wisdom

As the lending environment continues to tighten, more and more people are having difficulty qualifying for a mortgage.  And I am not just talking about people with histories of foreclosures and bankruptcies.  Many people who in the past would have gotten a mortgage without a problem are having trouble meeting the high standards of today’s lenders.  Yes, bad credit mortgages are still available.  The problem is that most people do not have the cash down required to qualify for one.

If you have been turned down for a mortgage, you basically have two options.  You can rent for another year or to or you can try to find a rent to own home.

The advantage of renting is that in today’s market, is that it will give you the lowest possible monthly payment.  Additionally, you are able to gain entry into a home for the lowest possible down.  The down side is that you aren’t doing anything to build equity or improve your chances of qualifying for a mortgage loan.

On the other hand, if you look at rent to own homes listings and find a home you would one day like to own, you can begin building equity immediately.  Yes, your monthly payment will be higher and you will have to come up with more cash out of pocket, but chances are that the required down payment when you go to close on your mortgage will be very small.  On top of this, you get to lock in your dream home now and treat it as your own while you are working on your credit.

So, if you’ve been turned down for a mortgage, it doesn’t mean that you have to delay your dream of owning a home.  Why not consider a rent to own home and start making your dreams a reality?

Tags: bad credit mortgages, rent to own homes, rent to own homes listings, rent to own houses