Credit Repair and Your Tenants: What You Need to Know

Many people seek out a lease option agreement because they can’t get a home through traditional means. Since credit is getting tighter and the qualifications for ANYONE to get a mortgage are being raised, you can help your tenants qualify for the lease option, and get financed, by putting them in a credit report program.

Let the Optionee know that since in the end they will exercise the option, and get financed, you want to help ensure that they are not just throwing their hard earned money away. The best way to do that is to work on their credit report.  Show them the added benefits once they exercise the lease option.

Usually if you’ve priced it right then their new payment after the option is exercised will be lower than the lease price they will be paying you.  That gives them something to shoot for, because who doesn’t want to save money?!  Once they are enrolled in a credit repair program, follow up with them from time to time to make sure they are following the program and improving their credit.

Have them meet with your finance person or mortgage broker who will be able to guide them along with tips on how to improve their scores and what to do in order to lower outstanding debts.  If you don’t have someone you can refer them to then please send us an email to questions@thewayneturnergroup.com and we’ll help you out.

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