How I bought my first home worth $100,000s with a rent-to-own program despite a bad credit score

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Homeownership is a dream for millions of Americans, but it can be out of reach if you’re living paycheck to paycheck.

One North Carolina woman’s dream became a reality after some financial guidance through a homeownership program.

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Heather Torres becomes first homeowner after raising her low credit score

Heather Torres, 35, had been renting in Greensboro for years.

she wanted to buy a place but less credit scoreThis, along with paying high rents, did not allow him to save enough for a advanced payment,

Determined, a single mother of two children aged four and 13, Heather tried house hunting, but came across real estate agents who weren’t helping her understand what it took to become a homeowner. need to.

That’s when she joined Landis.

Heather, now a first-time homeowner, told The Sun: “I learned about Landis from the real estate agent I was working with.

“She suggested I reach out to Landis, as I couldn’t get pre-approved on my own due to the high debt to income ratio.”

It’s a decision that changed her life—Heather was on a new path to homeownership.

How the Rent-to-Own Program Works

Heather begins working with financial experts landis With the goal of becoming a homeowner.

She was able to get the financial guidance she needed, but the process was not overnight.

Heather, who works in the legal field, had to see if she had qualified for her program by filling out an online application.

Once she was accepted into the program, financial experts worked with Heather to budget how much she could afford.

Next, it was time for house hunting.

With the budget provided by Landis, Heather was able to go out and choose the house she wanted to buy.

Landis stepped in, made an offer, and bought the house for Heather.

While Landis declined to share how much Heather’s property cost, Landis’ clients purchase homes ranging from $110,000 to $400,000.

Landis takes care of all evaluation, inspection and paperwork.

How much does this cost you?

Landis now has the house Heather wanted to buy.

During this time, Heather eventually rented it out with an agreement to buy the house from Landis.

Landis charges market rental prices to its clients based on the value of the house.

To give you an idea of ​​how much it will cost you, Landis provides a “home calculator” Which will drive the numbers into how much you’ll pay in rent, then your mortgage payment when you complete the program.

The home calculator allows you to choose the area where you want to live, provided Landis invests in that area.

Next, you can plug in the cost of the home, how much you’ll deposit, then how long you want to rent.

For example, if you choose to buy a $300,000 home in Indianapolis, Indiana, you will receive a recommended down payment.

In this case, $9,000 was suggested.

The company allows people to rent for up to 24 months.

Here’s a breakdown of payments by Indianapolis property:

Landis Program (24 Months)

  • Rent: $2,125
  • Savings for the down payment: $301
  • Total per month: $2,426

Mortgage Costs After Program:

  • as little as $1,750
  • Landis. With savings of up to $375 per month

During the rental period, Landis’ financial experts will work with participants to improve their credit and save more money.

Landis co-founder and co-CEO Tom Pettit told The Sun: “Landis’s core isn’t really a rental program. It’s an important component of it.

“The core is the coaching we give to people. It’s about financial coaching, financial empowerment.”

Stanford grads, Cyril Burdugo and Tom Petit, co-founded Landis

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Stanford grads, Cyril Burdugo and Tom Petit, co-founded Landis

Landis sets aside a portion of a customer’s monthly payment in a down payment savings account.

That money will be used for the down payment and closing costs.

If a customer decides to opt out of the Homeowners Program after Landis has purchased a home for them, Landis will reimburse the customer a 3% exit fee less accumulated homeowner savings.

This fee is to cover the cost of listing and selling the home.

How Heather took ownership of the house

Landis and Heather agreed on a purchase price and a date when she could take ownership.

They devised a financial plan that allowed Heather to make two credit card payments in a month, which rapidly increased her credit score.

Landis handled all paperwork for the process, working closely with Heather to ensure she was budgeting correctly and meeting all required filing deadlines.

Heather was able to submit a cash offer for her home which went a long way in securing her mortgage.

Last August 2021, Heather took over the rented house.

Heather said: “I feel accomplished for the first time being a homeowner, especially being a single mom and able to make room for my kids to call home.”

are you eligible?

Landis operates in about 15 states in the South, Southeast and Midwest. It works perfectly on its homeownership program.

application is free and available online or through their free app.

Landis explained that this would result in a credit score as low as 550 with $2,500 of monthly combined income.

Petit explained: “Depending on the application, we will evaluate whether we are in the right position to help them directly and for most people, the answer is yes.”

Accepted participants will get a budget to find the house they want to buy.

They will also get a financial plan explaining what steps need to be taken to obtain a homeownership.

A financial coach will follow up on progress and address any questions or concerns.

Most of the customers visiting Landis have a low credit score.

“People with 550s have often gone through tough situations and all that is needed is a little reset.”

Landis says it has successfully made the homeowner dream a reality for thousands of families.

Its success attracted the attention of celebrities such as actor Will Smith and rapper Jay Z.

The men invested in Landis’ latest funding round in 2021.

It has raised over $182 million since its founding in 2018.

As for Heather, she is happily living in her Greensboro home.

On the way he had to do some electrical work. Turns out there was a spark between him and Alex, the electrician he hired. Both are married now.

what are its dangers?

As with any major purchase or financial investment, it is best to be well equipped with the information you need so that you are not at risk.

For Heather, there was transparency in her rent-to-own agreement. She understood what she would pay and for how long.

It might not happen with everyone.

If you are paying rent during the term of the lease, the question is whether a portion of each payment is applied to the final purchase price.

Treat the home buying process the same as you would for a one-time home purchase.

This means you’ll have to do your due diligence, research the area, compare prices with other homes nearby, research the contract, and research the seller’s history.

we tell the states mortgage and bill support Prices up to $80,000.

Plus, How to Get Mortgage Relief Through a federally supported refinancing program,

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