Fannie Mae does Rent-To-Own to Help People Get Homes
In order to help stabilize hard-hit nieghborhoods, Fannie Mae has a program to get potential buyers into foreclosed homes. Fannie Mae works with non-profit organizations, such as Self-Help (self-help.org) to purchase foreclosed homes. Then the non-profits enter in to a rent-to-own agreement with borrowers who have the income, but not the credit history to qualify for a loan. The rent-to-own agreement give the tenant/borrower up to five years to qualify for a mortgage. These tenants will receive extensive credit counseling during this time.
Fannie Mae has allocated $200 million for this program. More details can be found at
http://www.fanniemae.com/homebuyers/pdf/keys_to_recovery.pdf
