I think with a FICO of 475, that wil be very tough for any lender to approve. But if you find the right situation (lease option, owner financing), you can get a deal done. But if I were a seller and a buyer with a low credit score wanted me to do an owner finance, I’d pass. That because an eviction is probaby less time & money than a foreclosure. If a lease option term is long enough for the buyer to get his credit repaired ( 3- 5 yrs.), the buyer can get good terms with a lender because the option fee, rent cedits and possible appreciation will result in a low LTV. The owner would feel secure because if the buyer defaults on payment, they typically forfiet all the money they invested. That’s how I understand the way it works anyway.
No but the se Option will allow him to take over control of the asset. Then it is all up to him, however he’ll end up an opportunity to make money which can then be used to secure lines of credit or invest in another property. I don’t think t was meant as a way to increase score but as a way to get into the game and make it happen.