Guess what happens when the option expires? The 'seller/landlord' received above average rental payments, sometimes an option payment, and a house that was taken care of more than another rental might be. What do you have? Less money in your pocket.
We don't recommend against these because we only sell real estate. We recommend against them because they are not in your best interest.
Do the work to get your credit repaired, and then buy a home when you're qualified. The other leads to broken promises. Maybe you can find someone to co-sign now if you're credit is bad, but rent to own options rarely, if ever work for the benefit of the tenant/buyer.
Most of the time, the tenant (buyer) will not exercise the option because the strike price is not attractive. Other times, the tenant cannot exercise, cause he has to move, or defaults on the rent, etc.
In both cases, the tenant (buyer) would lose all the extra premium that he has paid over the years.
There are companies (investors) which specialize in rent-to-own programs, the name that I can think of is waypointhomes.com. I believe they have a portfolio of a couple of hundred million $ of properties in the bay area and sacramento.
Hope that helps.
I would encourage you to rent and save your money until you are able to buy.
Best of luck.
The over market rent you pay is also usually non-refundable so if you don't exercise the option you are out even more money.
Start putting aside some money every month as if you were paying an option rent, get your credit in order (if that is the issue) and you will be ahead of the game.
If you have decent credit but no down payment,/closing funds talk to a couple of lenders and see what types of loans you may qualify for, you might be surprised.
My advice is save your money, work on building credit and buy a home the traditional way. Don't get suckered by something that sounds too good to be true, because it generally is too good to be true.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
9am till 7pm Monday thru Saturday, Sundays by appt.
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Let me chime in here and give you a quick answer...
There are "slim and none" options out there. We as agents don't recommend them because it's not really a good deal for anyone, especially the Renter/Buyer.
Here's the dirty little secret... over 1/2 of the "lease options" never go to sale... and guess what you as the buyer would lose the "option" money unless you are very careful.
Go see a loan agent and have them run your credit and then they can tell you what you have to do to get a loan.
I hope this helps...
Make it a great day...!
Hope this helps point you in the right direction