Please feel free to call me. We should get together to discuss your situation and plan a strategy to get you in position to purchase. Rent to owns aren't the way to go. Usually the Buyer is overpaying for the house,
We may be able to increase your score enough to get you mortgage pre-approved by March 2013..
Looking forward to speaking with you soon.
All the best,
Larry Lichtman, CNE
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/Text: (267) 254-7994
Real Estate Sales & Leasing
Property Management & Insurance
1611 Snyder Avenue
Philadelphia, PA 19145
Office: (215) 271-7070
Rent to own has a lot of details.
All your rent does not apply to the purchase price. Only the amount over and above the fair market rent. Also, you have no idea what the property is worth at the time of the purchase.
So, you can do this yourself.
Put X amount of dollars away every month, clean your credit and then buy a property. Maybe even the one you rent, but the seller must agree to sell it to you.
So, if they don't want to sell it to you, you will then be in a position to buy another home. The negative to that is that you have to move, but that's it.
Also, a good real estate agent can negotiate for the seller to pay your closing costs or there maybe grants to do that.
It's possible depending on the situation of the seller. Rent to own is first and foremost a rental. The seller remains the owner and you would be a tenant. For a seller to consider this arrangement they must be allowed to rent the home, subject to any HOA rules, not need their equity for the next purchase and have an offer strong enough to persuade them to take the risk.
The risk to the seller is that you wouldn't be a good tenant, that you could damage the home or that the additional wear and tear over your lease period would make the home less attractive to another buyer at that time. In the worst case scenario the risk is that you would stop paying rent and the owner would be forced to evict you.
Not many sellers are willing to accept these risks unless there is a strong motivation through over market rent and a non-refundable payment for the purchase option.
My suggestion would be for you to find an affordable rental and work on your budget and credit issues. You'll have more options available when you are qualified and not have to make a lopsided offer to entice a seller to take your offer.