4 Foolproof Steps to Qualify Any Tenant-Buyer for Your Home

When you are selling your home as "Rent to Own", you are leasing out your home typically

for a period of 1-3 years. This is someone who is interested in buying your home during this 

time frame or at the end of this term.
 

They usually have trouble qualifying for a conventional home loan from the bank for the 

following reasons:

• Not enough down payment

• Not enough time on their job

• Problems with their credit

• Own too many properties to begin with

These tenant-buyers are in a unique position because they despise the idea of being a

renter, yet loves the idea of owning their own home someday, they elect to buy on a lease 

with the Option to buy - regularly referred to as a "Rent to Own" arrangement. 

 

 Logically, the home owners that we work with have some questions and concerns:

• Why do they have bad credit?

• How do I know they will pay me the rent on time

• What kind of past rental history do they have?

• Have they ever been evicted?

• How much more time do they need on their job before they can satisfy a bank's requirements

• Will this tenant-buyer destroy my house?

• How long will it take for them to fix their credit before they can qualify?

• Do they have any felonies?

• And more....

These are valid and legitimate questions and concerns that must be addressed, before any

homeowner would want to lease/sell their home to someone using a Lease-Option. We 

know that there are no guarantees in life, and that there comes some inherent risks when 

you are leasing a property to someone. This blog post is meant to give you some "food for 

thought" for you to digest, allowing you to make the best and most educated decision for 

your particular wants and needs.

6 Reasons Why Selling Your Home, "Rent to Own" 

Is Better (and Safer) Than Just Renting Your Home

• They will help you save money by not paying a property management company 10% of your rent. This is because they will assume the majority of the responsibilities that a property manager would usually do.

• They will take responsibility for the first $5,000(or more) in repairs, allowing you to never be a landlord

• With your written permission, of course, they will often put their own money to the home to improve it's value

• They take the home "As Is", this way you do not have to invest another penny into the home

• They "tenant-buyer" wants to take care of the home as their own, because that's the ultimate goal(unlike regular renters)

• You get a larger security deposit called an, "Option fee" which is non-refundable-usually 2-3 times larger

6 Reasons Why Renters Who Don't Want to Buy Are Risky

• If you are an out of state landlord, things can get way more expensive and have even less control

• You will have to pay 10% of your monthly rent to a management company, if you are not interested in being a landlord

• You are responsible as a landlord to fix any and all leaky roofs, toilets, faucets, etc., on weekends, weekdays and all hours of the night

• They may have decent credit today and pass your credit check at this moment, but things can change-think about 2007-2010 - as an example.

• Renters put down a small, refundable security deposit that's usually equal to one month's rent

• They usually do not tend to take care of your property the same as if it was their own, because that is not their goal in the end. Think about it, You wash the car you own, but don't wash your rental car, correct? Correct!


 With a Firm Understanding of Why We Prefer Selling "Rent to Own," 
Let's Take a Look At the 4 Ways We Qualify Our Tenant-Buyers

1. Letter of Intent
 

2. Rental Application
 

3. "Documentation Always Beats Conversation"

(Please keep in mind that we understand that your credit is not perfect, and you may have a blemished past. Do not worry. We are every understanding and will work with you)

• Valid & Current Driver's Lincense for Both Applicants
• Pay stubs or W2's or 12 Months of Bank Statements or Tax Returns Proving Income for Both Applicants
• References for Your Prior Rental History for Both Applicants
• Background Check for Both Applicants Over the Age of 18
• One paragraph Explanation Letter (if applicable) for Any Challenges You Have That We Need to Be Aware Of


4. Pre-Qualification Letter from the President of Nationwide Home Loans, Inc. - David Ruch

Finding a mortgage lender who understands what a Lease-Option (Rent to Own) 

transaction exactly is, and one who will actually work with our tenant-buyers a year or two 

before being able to qualify for a loan is virtually impossible....until now. 


Mr. David Ruch is the owner and President of Nationwide Home Loans, Inc., New

Millennium Homes, and Nationwide Homes Realty, is one of those very rare individuals who 

"understands what we do" and is a long-term thinker. This probably explains his

 tremendous success.





Mr.Ruch has agreed to qualify all of our tenant-buyers prior to entering into a binding 

agreement with you. This way, you know right from the start how long they need to qualify 

for a home loan. He also has agreed to provide you with a pre-qualification letter that 

assesses the tenant-buyer's:

• Current FICO score credit standing and determine what needs to be done to increase their FICO score and how long it will take
• What types of bank loans they are good candidates for
• What Steps they need to take between now and the time their term will end in order to ensure they can qualify for a home loan
• And...much much more

Here is a little more helpful info about Mr.Ruch



• He has multiple licenses, including Mortgage Banker, Mortgage Broker, and Real Estate Broker in Colorado and California.
• Mr. Ruch’s career as a mortgage lender and real estate investor spans 33 years including ownership of Nationwide Home Loans for the last 20 years.  Currently, he personally owns more than 500 residential units, including multi-family apartments, single-family residences and investment in lease options.


• Over the last thirty years, other investors have entrusted their money to his experience and long term expertise in making them a safe secure profit.  Private Money Lending through high-yielding first  trust deeds is the cornerstone of his investment policy. 
• Conservative asset backed lending and investment in multi-family and single family buildings together with some commercial facilities provide a broad spectrum of opportunities for ample profit, firstly for his investor pool and secondarily his own business enterprises.
• Mr. Ruch takes pride in the fact that no investor has taken a loss not even through the last real estate downturn nor any of the other fiascos and recessions which occurred during his tenure.

Plus...to ensure our tenant-buyers are a safe choice for the sellers we deal with, our work 

does not stop there. Once one of our tenant-buyers has bought the Option rights from us, 

we provide them with our very popular credit restoration book. It has helped hundreds of 

people just like them, restoring much of their credit in as little as 45 days.

 
This helps to make sure that they can qualify to buy your home during, or at the end of, the 

lease term that you and the tenant-buyer has agreed upon.




Free Gift for Your Tenant-Buyers
Our 45-Day Credit Restoration Guide




This free gift is the perfect guide for our tenant-buyers to follow when it comes to the following:

• Increasing their FICO scores
• Negotiating down past debts 
• Qualifying for a bank loan 
• Taking back control over their finances
• Seeing results in as little as 45 days or less