Home Buying in Philadelphia>Question Details

Kiara, Other/Just Looking in 19144

Can a house not listed as rent to own be used in such a program ?

Asked by Kiara, 19144 Wed Nov 14, 2012

my current credit score is from 555-578 which i know isnt high enough to get approved for a fha loan. Im currently interested in a home i was wondering if a home isnt advertised as a rent to own is there a program that you can get into that allows you to do rent to own on that current home or is there some one i can contact that can help me do a rent to own program in a similar area with a similar house if im not going to be able to get approved for a fha loan with that score. I am looking for the area of mount airy 19150,19138 and my lease is up in march so i have to get on my job have to be out of my current apartment by then

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6
Fred Glick’s answer
Hi Kiara,

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.

Goo luck!

Fred
Web Reference: http://fredglick.com
1 vote Thank Flag Link Wed Nov 14, 2012
Hi Kiara,

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
LarrySellsRealEstate@gmail.com

DJCRE, Inc.
Real Estate Sales & Leasing
Property Management & Insurance
1611 Snyder Avenue
Philadelphia, PA 19145
Office: (215) 271-7070
http://www.DJCRE.com
2 votes Thank Flag Link Wed Nov 14, 2012
Good Evening Kiara,

1st things is 1st.... get your finances in order try calling: http://www.homecatch.com/mortgage

All the best John Curci 215-757-2889
0 votes Thank Flag Link Thu Nov 15, 2012
Hi Kiara you should work on getting your credit together before you take on the task of buying a home. Most rent to own situations do not end in homeownership for the renter. Good Luck
0 votes Thank Flag Link Thu Nov 15, 2012
its all up to the seller some sellers might want to do this
0 votes Thank Flag Link Wed Nov 14, 2012
Kiara,
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.
0 votes Thank Flag Link Wed Nov 14, 2012
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