rent to own

Can I Rent to Own with Bad Credit?

The short answer is, yes

If you’re an aspiring homeowner that lacks the credit and/or capital to qualify for a traditional mortgage, renting to own might just be for you. 

While rent-to-own home agreements have been around for some time now, they’ve only now become more popular due, in large part, to the current state of the real estate market, especially here in Canada.

Now, no matter your financial circumstances, generally speaking, you can take a path that provides you with the opportunity to one day purchase a home. The best part? You get to test drive the house for a couple of years before committing! Not to mention the ability to save, improve credit, and further build a stable financial future…

In what follows, we’ll be diving into the details of how a rent-to-own home agreement works and whether or not YOU can rent to own with bad or non-existent credit. While we kind of gave it away in the beginning, the news might just surprise you! 

Renting to Own with Bad Credit

Rent-to-own agreements have the unique stipulation that allows buyers to sign the dotted line on the lease-to-purchase contract whether they have great credit, poor credit, or no credit at all (with exceptions, of course); it’s one of the many draws to rent-to-own homes… 

So, what’s defined as bad credit? Can your credit be so bad that you won’t be qualified for a rent-to-own home?

Generally speaking, a 700+ credit score is widely considered to be a good score. Anything under a 650 tends to be looked at as mediocre to poor, especially in the context of mortgage qualification. 

The good news? Credit scores of 620 and above are commonly accepted scores in the context of rent-to-own homes. The bad news? Credit scores below 600 are frequently denied qualification for rent-to-own homes. 

Beware of Rent-to-Own Scams! 

Because of the unique stipulation that allows buyers to pre-qualify for rent-to-own homes with poor credit scores, an incredible advantage, generally speaking, vulnerable populations that have abnormally low credit scores often find themselves in rent-to-own scams.

In order to avoid such a circumstance, it’s important to work with a reputable, trusted agency that has your best interest at heart. If you come across a contractual agreement that sounds too good to be true, it probably is. As tempting as it might be, the best decision you can make for your present and future self is to walk away. 

Luckily, we here at Home Owners Soon are here to help! If you’re concerned about your credit score and are curious whether or not you can qualify for a rent-to-own home, contact us and we’ll do all that we can to guide you in the right direction. 

Before departing, below are some final tips to follow when it comes to credit scores and rent-to-own agreements: 

  • Do Your Due Diligence; Read the Fine Print
  • If Possible, Invest in a Trusted Real Estate Lawyer or Agency
  • Prioritize On-time Payments of Your Bills
  • Reduce Credit Card Utilization to sub-30%
  • Seek Professional Advice

In conclusion, while it can be an unfortunate and overwhelming time of one’s life trying to improve credit scores and pre-qualify for mortgages and lease agreements, it’s not the end. 

If you or someone you know is currently living with a sub-620 credit score, it’s recommended to invest your time and money into improving that score. This way, you build on your financial future while actively avoiding rent-to-own scams. 

To learn more, find us at Our team of experienced real estate professionals is eager to help.