Home Buying in Houston>Question Details

Deanca Mason, Home Buyer in 77084

Hi im recently married and me and my husband is looking to rent to buy a house we are first time buyers with a family of 5

Asked by Deanca Mason, 77084 Wed Mar 19, 2014

I have a 560 credit score and mi husband has a 690 can someone help us get started

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11
Deanca ...

I'm assuming that you're inquiring about rent-to-own property because you don't have a down payment. There are many misconceptions about the process, and we get this question often here.

Texas Realtors are not permitted to participate in such transactions. You'd have to hire an attorney to prepare two separate contracts ... one for the lease, the other for the sale. All that aside, you'd need at least a 20% down payment, which you would forfeit if the sale does not close. Contrary to popular belief, none of the rent would be applied toward the sale price. The interest you'd be paying would be about twice the going rate (in the 8% range), and you'd still have to qualify for a mortgage in a few years to pay off the owner ... it's known as the "balloon."

In this very active market, homes sell quickly, so there's no incentive for sellers to even consider a rent-to-own arrangement. In the unlikely event that such a property exists, it would almost certainly be in a less desirable area, need considerable work, or both.

As you can see, all the risk is on the tenant/buyer, and in the event that things don't go as the contracts require, the landlord/seller gets to keep both the house and your money. Please ... don't even consider touching a rent-to-own deal. Continue to lease, and save enough cash to purchase a home you can comfortably afford.

You'll likely have to work on your credit score (your husband's is decent, if not great) ... 640 will probably be best to qualify for FHA-insured financing, with a down payment of 3.5% ... a far cry from what you'd need for a lease-purchase deal. Your time will come before you know it. I wish you well.
1 vote Thank Flag Link Wed Mar 19, 2014
FHA MORTGAGE LOANS ARE EASY TO QUALIFY FOR BECAUSE YOU CAN:
Purchase a Florida home 12 months after a chapter 13 Bankruptcy
Purchase a Florida 24 months after a chapter 7 Bankruptcy.
FHA will allow a FHA mortgage 3 years after a Foreclosure.
Minimum FICO credit score of 580 required for 96.5% financing.
Bad credit Florida FHA mortgage approvals minimum FICO credit score of 530 required for 90 FHA financing.
No Credit Score Florida mortgage loans & No Trade Line Florida FHA home loans.
http://www.bad-credit-mortgage-lenders.com/
0 votes Thank Flag Link Wed Mar 25, 2015
FHA MORTGAGE LOANS ARE EASY TO QUALIFY FOR BECAUSE YOU CAN:
Purchase a Florida home 12 months after a chapter 13 Bankruptcy
Purchase a Florida 24 months after a chapter 7 Bankruptcy.
FHA will allow a FHA mortgage 3 years after a Foreclosure.
Minimum FICO credit score of 580 required for 96.5% financing.
Bad credit Florida FHA mortgage approvals minimum FICO credit score of 530 required for 90 FHA financing.
No Credit Score Florida mortgage loans & No Trade Line Florida FHA home loans.
http://www.bad-credit-mortgage-lenders.com/
0 votes Thank Flag Link Wed Mar 25, 2015
Well i believe you guys should make a decision on buying rather going for a rented apartment. Also ensure that your good credit helps you to get housing loan with a low rate of interest & payback time should be little higher.
0 votes Thank Flag Link Fri Mar 21, 2014
Deanca,

I would encourage you to save money and get your scores up before you buy and not try some complicated scheme that might cause you to loose money or worse, get you caught up in a scam! Your scores are not the worse and with a little patience, you will be able to obtain the best terms for financing, the lowest interest rates possible, etc.

If you would like to speak to a few lenders and get an idea of what you need to do know, please click here. http://www.markknowshouston.com/res_list.php?cat=12282&c…

Let us know if we can assist you further privately.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
0 votes Thank Flag Link Fri Mar 21, 2014
There are rent-to-own options that lets you choose the house you want to live in. Lenders like myself offer this program where we buy a house that you would like to rent-to-own. Then when you are ready to buy, we sell the home to you. If you do not want to buy the home, that is also allowed. If you are interested in this option feel free to contact me. So if you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Wed Mar 19, 2014
I took a look at the program for a client ... appears as if there's a hefty deposit involved, which would be forfeited if the tenants fail to go ahead with the purchase, and/or cannot qualify for financing. Please correct me if my information is inaccurate.
Flag Thu Mar 20, 2014
Rent to own is a HORRIBLE idea for the buyer. I strongly suggest that you avoid these types of transactions. Work on your credit and when you can qualify for a loan, hire an Exclusive Buyer Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. Visit http://www.naeba.org for a referral to an Exclusive Buyer's Agent in your area.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.helpubuyamerica.com
0 votes Thank Flag Link Wed Mar 19, 2014
Hi Deanca,

Rent to own gets complicated and as Realtors, we are not permitted to participate in these types of transactions. Being first time home buyers though, can avail you of some incentives, however, it would be a good idea to work on your credit to get a better rate for your mortgage. If you can gather some down payment and closing costs, you will see that it makes it easier for you to move forward with your puchase. There may be a few resources to help with your down payment, but it all depends on individual circumstances and scenarios.

It may not seem like the best thing to you right now, but if you can, keep renting for a little longer and accumulate the case needed for closing.

Persis
REALM Real Estate Professionals
713-294-7747
persis.realtor@gmail.com
0 votes Thank Flag Link Wed Mar 19, 2014
Hi Deanca, there are 77 properties available with Lease/Purchase financing available. As mentioned earlier by Mr. Geffon, you would need a lawyer to create the required documents. I would not recommend this type of transaction, but it is certainly an option. Depending on what area you would like to purchase, I may or may not be able to help you find your new home. If you are out of my area of expertise, I would have no problem finding you a quality agent in the market area you are looking. Visit http://goo.gl/7wGlHJ to connect with me directly.

Regards,
Joseph Garcia
Web Reference: http://goo.gl/7wGlHJ
0 votes Thank Flag Link Wed Mar 19, 2014
Good morning Deanca,
I would love to help you get prequalified for a mortgage. I can take you through the process step by step. I work with first time homebuyers very frequently and there are grant programs available to help you with your down payment. Please feel free to reach out to me with any of the contact information on my profile.
0 votes Thank Flag Link Wed Mar 19, 2014
I would love to help you get started. First, you must get ur finances in place and see what you qualify for. I have a loan officer that I work with on my deals.Then decide what area you want to look in.. I would like to work with you and your husband. Please contact me .
0 votes Thank Flag Link Wed Mar 19, 2014
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