Rent to Own Minnesota

Why is it a good time to rent to own in Minnesota?

First and foremost with the financial markets the way they are many sellers are having a tough time finding qualified buyers. This is discouraging to a fair amount of people. Rent to Own Minnesota
Visit MNRentToOwn.comLately I have heard of stories of people with stellar credit being disapproved for financing.

I got a call the other day from a couple selling thier house. They asked me if I would help them structure a lease option or rent to own. What they told me is their buyer was approved for financing and the financing company didn't honor the closing, they kept moving it back. The funny thing these buyers had perfect credit.

The worst of it is the buyers absolutely had to move. So both parties got together and did some research and came to the conclusion that they should do a rent to own. Being in Minnesota they searched the web and we came up first and that's when they called me.

I tell this story to illustrate that sometimes a rent to own in Minnesota is not only for the credit challenged, sometimes it is a good fit for other situations.

Don't Rent After Foreclosure Without Reading This!

Foreclosure can be a daunting thing to go through for anyone. There is the confusing process, then Minnesota foreclosure state laws, and the simple fact that you are losing your home causes many people to lose hope of ever owning a home again.
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Stop Foreclosure Now!
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Some families get so frustrated they simply just give up and turn to just renting feeling that there is absolutely no hope for future home ownership. This is simply not true. While having a foreclosure on your credit will be certainly be a challenge to getting financing in the future it is in no way the end of home ownership.

There are many keys to success to get back to owning a home after foreclosure. It is important to remember that you are not alone and learn from the experience. The next most important key for your success is to sit down and come up with a concrete plan that gives you enough time to reestablish your credit. This usually involves assessing your current financial and credit situation. Once you have done this you should establish a realistic budget, get involved in credit repair or maintenance program, and commit on being disciplined to follow your plan.

Your next decision is one of your most important decisions you will make. What will be your living situation in the next couple of years. You really have three core options:

Striaght Rental
You could find a place to just rent and stay focused on building your credit and cash resources in the quickest time possible. Typically under a straight rent scenario you will need 24 - 36 months from your foreclosure date to think about getting financing. More importantly given the current market conditions when you are at the end of this rent period of 24 - 36 months you still will have to come up with a 10% down payment. Also you should add to this that you will have to move once again. This is typically one of the best reasons why doing a straight rent might not be the best option for you.

Rent to Own
A rent to own or lease option is where you rent a home for a period of time and you have the option to purchase the property within your option period. Most likely your option price is fixed and you are getting a monthly rent credit that gets credited towards the purchase price. Typically on a rent to own you are required to come up with an upfront payment called an option payment. This option payment is credited towards the purchase price and is typically anywhere from 1 - 5% of the purchase price depending on the particular home.

The benefit of doing a rent to own home after foreclosure is it gives you the ability to gain equity in the home by getting a monthly rent credit and you are also building a payment history that a future lender or bank can look to as a credit reference. Keep in mind though that if for whatever reason you don't exercise your option to purchase the property in 99% of all lease options you most likely will lose your option payment.

For rent to own homes in Minnesota visit MNRentToOwn.com

Contract for Deed
A contract for deed (aka “installment land contract, CFD, CD, C4D”) is basically a agreement to sell and buy a home wherein the seller will hold the title until the time when the contract’s provisions have been filled, usually upon full payment of the property. In this case, the buyer may already occupy the property and make the payments as stipulated. Upon completion of payment the seller will pass the title by recording the deed.

In a contract for deed typically you get more tax benefits to the property than as a straight rental or rent to own. Most contract for deeds require a minimum down payment of 5% of the purchase price. Payments are usually based on the remaining balance of the contract.

The benefit of a contract for deed is it is usually simpler to obtain your own financing to cash out the contract. Typically when you finance to cash out a CD the lender will look at the property as if you already own it and the financing works more like a refinance.

A great resource for Contract for Deeds in Minnesota is MNOwnNow.com

So which one of these is the better situation for you? Of course this depends on your individual situation but generally a contract for deed is more desirable than a rent to own, and a rent to own is more desirable that a straight rent. Keep in mind that above all else, learning from your experience, having a good plan and the discipline to stick to your plan will be the key to your success of future home ownership after foreclosure.

Rent to Own Minneapolis Deals Week 2 - 2008

MN Rent to Own Nice Homes in Nice Areas
Visit MN Rent to OwnOne of the things we lack here at MN Rent to Own is a solid listing of great rent to own homes in Minneapolis. We have created a list of some great rent to own homes located in Minneapolis. We are not connected with these listings in anyway they just peeked our interest as we were looking for great properties for some of our clients.

$1350 / 3br - http://minneapolis.craigslist.org/apa/531439122.html
$1400 / 3br - http://www.rentals.com/Home-Rentals/Display.aspx?ListingNumber=743315
$1375 / 3br - http://minneapolis.craigslist.org/apa/531436251.html
$1395 / 4br - http://minneapolis.craigslist.org/apa/531111445.html
$1575 / 3br - http://minneapolis.craigslist.org/apa/531380946.html
$1450 / 4br - http://minneapolis.craigslist.org/apa/531272656.html

Can You Do A Rent To Own With Or After Foreclosure?

A question I hear often here at MN Rent to own is:

Can I do a rent to own after a foreclosure?

Yes you absolutely can and you should. A rent to own is actually a perfect solution to get back on your feet and on the road to home ownership. Why go back to the straight renting world for a few years when you can do a rent to own immediately and get the benefits of monthly rent credits and locking in the purchase price on a your new home.

While it is good to do a rent to own with a foreclosure on your credit file there are a couple of things you should keep in mind.

The main item of concern is the end financing solution. As with any rent to own your main end goal is to obtain your own financing. In all my conversations with Lenders and mortgage brokers it is apparent that with a foreclosure on your credit record most lenders want to see at least 18 - 24 months from the foreclosure date (sheriff sale) before they will offer home financing.

The next item should go with out being said but is one of the keys for obtaining financing after a foreclosure. You must pay your bills on time. Lenders want to see that you have been responsible and have been able to pay your bills with little problems.

The final item is that it is critical that you take an active roll in your own credit repair/maintenance or enroll into a credit repair/maintenance program. If you do credit repair/maintenance yourself make sure you stay on top of this diligently. Your other option is to work with a reputable credit maintenance agency such as http://www.creditrestorationltd.com/. This last item is critical to making a rent to own a success.

With all the problems with exotic mortgages such as adjustable rate mortgages (ARMS) we might possibly see lenders in the future relax the 18-24 month time frame a little but it will still come down to your income and credit behaviour since the foreclosure.

In closing, finding a home on rent to own is one of the best first steps to getting back on track with home ownership after a foreclosure.

Step 1 - Road to Home Ownership

Step 1: Enter the Road - Evaluate Your Current Situation
We want you to know that home ownership is possible through MN Rent to Own. Before you begin your search for the perfect home you'll want to take a close look at your finances. This will help you determine what you can afford. By examining your income and monthly expenses you will get a better idea of what is realistic for you and your household.
When you qualify for a Rent to Own you are not qualifying with a bank, though eventually you will have to get approved for financing. This is why step 1 is important for you to understand and complete.

There are three primary things that are important on the Road to Home Ownership program. First is the amount of down payment you have to work with. This should typically be 2-3% of the purchase price of the property. Second, as a general rule of thumb, your household's monthly income should be 2.5 - 3 times the monthly rent. Third is your current credit situation, do you have to establish credit, maintain credit or vastly improve your credit?


to learn more about the Road to Home Ownership Program visit MN Rent to Own