Profile picture for sktrmarie

Are there any people on here who can help me figure out how to rent to own a house?

  • February 27 2013 - Independence
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Answers (6)

Profile picture for CallTheSisters
Best to find a property to rent even if it is not ideal.  Clean up your credit and wait until you can qualify for a loan.

The only person with an advantage on a rent to own - is the owner.

If you insist on trying rent to own be sure you have the property appraised and you hire and attorney to review every document you sign.
  • February 28 2013
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It doesn't work, don't do it, don't even try.

Best case scenario - you overpay in rent for a property that you can't buy when your option period comes up.

Worst case scenario - you settle for a house nobody else wanted to buy at a price far above what anyone else would have considered paying.

Another worst case scenario - the "seller" stops making mortgage payments and runs off with your money.

All the best,
  • February 28 2013
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Profile picture for sktrmarie
I really want to rent but I can not find anything in the area that I want to be
in or for the price i need I am very new at house hunting and am just lookinf for something to rent or rent to own my credit is NOT good enough to buy a home and i dont know about finding a realator or anything
  • February 27 2013
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Profile picture for wetdawgs
While the theoretical concept of rent with the option to buy may seem attractive, some of the realities are considerably less so.

Owners who will consider rent to own are very rare, so it will cut down your options for properties considerably.   I consider it much smarter to spend a year or two working on improving your credit and (if necessary) saving up a good down payment.   Yeah, it is tough to move but it even tougher to lose a lot of money attempting to buy.

Some features of rent to own:

1.  Down payment required - often substantial (say 10%) and is non-refundable if the potential buyer doesn't purchase.

2.  Monthly rental is above fair market rent, with the only amount going to purchase is the amount above the fair market rent.  This is also not refundable.

3.  If not qualified for financing at the agreed upon  time and price, then you lose everything. 

4.  The price is agreed upon at the beginning of the contract, and who knows where house prices are going.

5.  You still depend on the owner to pay their mortgage.   If they fail, you lose.

If you do get involved in this, please involve an attorney in the contract.

  • February 27 2013
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Why do you want to rent to own? How do you see it as benefiting you? Rent to own is almost always structured to benefit the seller. In general they want a large down payment and or they only allow a small portion of the rent to go toward the principal. 

In all but a few circumstances, buyers are better off to find an affordable rental, save, and work on the reasons they can't buy traditionally, ie, repair their credit. 

It generally only works for inexpensive properties that can be paid off quickly, or for buyers who will NEVER be able to buy traditionally. 
  • February 27 2013
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Profile picture for AmyCimetta

It's not that commom but there are sellers out there that will consider a "lease option". In plain English, this is a property that you can rent with the option to buy. Now, you have to pay for the right to this option. Your offer should be structured in such a way that it dictates the rental fee, the sales price, and the cost and expiration of the option. If you decide to purchase the home, then the option normally gets applied to the sales price. If you decide not to purchase the home, then you forfeit the option money.

Otherwise, if  you're renting a property, you can always ask the seller if they would be willing to sell it to you. Or just make sure that they know you are interested, if they decide to put it on the market.

  • February 27 2013
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