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Minimum Credit Score Needed to Get into a Rent to Own Home

by | Oct 22, 2021 | Credit, Rent to Own

Minimum credit score for a rent to own home?

Your credit score number carries a lot of weight behind it and the unfortunate thing about it is that it falls easier than it does to build it. Everything affects it, like making payments on time, using credit cards within our means, and paying off debt. There are also things beyond our control, like a recession, a hurricane, the housing market crash, and unexpected medical debt.

First things first: you should check what your credit score is so you know what you’re working with. Click here to simply and quickly check your credit score now.

So, What Credit Score Gets You a Rent to Own Home?


Having a low credit score while also trying to finance a home purchase is also a daunting task. Lenders are most likely not going to give you a loan, as they do not trust that you will be able to pay back their money. (in fact, if you know for sure you have a low credit score, it’s time to do something about it. Click here to learn more about our trusted credit repair program.) On the flip side, a high credit score gives lenders confidence in your ability to repay them. 


However, if you’re looking to buy a rent-to-own home, you have a little bit more wiggle room than you would when applying for a mortgage. When renting a home with the option to buy later, your lender will look at both sides of the deal when determining whether or not they will lend money to the buyer. They’ll consider both the future value of the house as well as how likely it is that the buyer will be able to make payments on time over time according to terms agreed upon by both parties in writing prior to the closing sale or lease transaction date.

Did you know that you might qualify for a rent to own home right now? We highly recommend that you click here to see if you qualify– you might be pleasantly surprised.

It is very important to remember that your credit score is the most important number pertaining to your financial life when you live in the United States. The higher your credit score is, the better of a deal you will be able to secure on a mortgage loan when it comes to the end of your intent to purchase agreement. Lenders will give you better interest rates, which means you will be paying off your home faster.

Knowing how lenders will perceive your credit score can save you thousands in interest payments and fees. The general rule of thumb is that you should have a credit score of at least 620. The better your score, the more options you will have when looking at rent-to-own home programs. 

The minimum credit score needed to qualify for a rent-to-own program depends on the company that you are applying with. There are many rent-to-own companies out there, and each one has a different minimum credit score requirement.  A lot of rent-to-own programs require a score of 650 or higher. Some companies may only accept applicants with a 700+ credit score. 

Don’t fret though, because many programs exist where other rent-to-own companies will consider applicants who have a lower score as long as they have a positive rental history, proof of reliable income, and are working to repair their credit. 

For example, Rent to Own Home Finder has direct access to First Time Home Buyer Program. This program connects qualified low-income homebuyers with different federal, state, and private programs that help make buying your rent-to-own home affordable and accessible. Government mortgage insurance will insure the mortgage so even if your credit score is low, the risk to the lender is reduced and they will potentially lower the fees and down payments. There are also subsidized interest programs where a third party will pay the interest on the mortgage loan, making the payments more affordable and helping pay off the mortgage faster. 

While a credit score is not the be-all and end-all of renting to own, it’s worth noting that the higher your credit score, the less likely you are to run into problems when it comes to qualifying for the program and eventually getting a loan at the end of the lease agreement. 

Similarly, you may also want to check out our blog for the rest of the credit series, which can help you get a good credit report score or give you tips on how to build your credit score. This will help you get a better deal for rent-to-own homes and keep your credit rating healthy or improve it over time. 

Remember, the best first step in many cases is to see if you qualify for a rent to own home right now. Click here to see if you qualify for your rent to own home right now.


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