I agree with James. All owner financing and rent-to-own situations generally do are cost the purchaser more money and restrict you to one house.
An owner financing situation (typically referred to as a land contract) is generally going to require you to put up a down payment then make payments for a set amount of time - usually 2-5 years - at a rate of interest that will surely be a lot higher than you can get a mortgage for. The downside to this is that if you miss payments on your land contract or can't get financed within the time frame needed you could lose your down payment and anything you've put into the house. Plus what if you decide you don't like the house once you move in? Same thing!
A rent-to-own arrangement typically presents the same type problems. You may not have to put down a large down payment, but generally a rent-to-own agreement will credit you some portion of the rent you pay towards a down payment later on if you purchase the house. But be aware that mortgage lenders will only allow rent credit in situations where your rent EXCEEDS the market going rate for rent. Example - if the seller wants to give you $100/month from your rent as credit towards a down payment, and the going market rate for rent is $1200/month, they have to charge you $1300/month in rent for this to be allowable. So if you can't get financed later or don't like this house then you just wasted $100/month that could have been saved up towards a home that you DO like.
James is right, you are much better off flat out renting for now or seeing what steps you need to take to become approvable for a mortgage.
If you'd like to explore getting a mortgage preapproval feel free to call me or email me and I can work with you to help make this a reality.
Mortgage Loan Originator | NMLS# 977416
Telephone 248-728-0078 | Mobile 313-622-7383| Fax 248-595-7130
I was looking at homes in a subdivision yesterday named " Lake Joy Village" just south of property your question was asked about. There was a lot of manufactured homes for sale. If I can help you anyway let me know!