| Many people that have either been turned down for | | | | able to refinance out of. |
| traditional financing are turning to Rent to own or | | | | 3. Did they require a large down payment (5-10k) and |
| Owner Financing to buy a house these days. While the | | | | above market payment for the house. |
| offers advertising the fact that "Bad Credit is Ok" may | | | | 4. This is sometimes done knowing full well that if you |
| be appealing. The motivation behind these offers often | | | | default they can keep your down payment, take back |
| is not in the best interest of the people the customers | | | | the house and sell it again. |
| that use it. | | | | 5. Have they set up a bank to refinance your owner |
| Let me explain. There are some easy ways to find | | | | financed loan once the seasoning period is over. Banks |
| out whether the person/company selling the house is | | | | will only refinance a borrower who has owned a home |
| interested in you actually owning the home or just | | | | for at least 6 months. |
| making money off of you. | | | | These are all reasons to be suspicious of the offer. So |
| | | | before you pursue owner financing or rent to own for |
| 1. If your credit is low, are they offering a service to | | | | the purchase of a house. Make sure you are not being |
| help you build your credit or are they reporting your | | | | set up for failure and you have a plan of action to get |
| payment to the credit bureaus. | | | | your credit in place to refinance the owner financed |
| 2. If they aren't, chances are they have locked you in a | | | | loan. |
| VERY high interest rate loan that you may never be | | | | |