Summarizing....They are a trap looking for a rat.
A ship looking for a rock.
Of course there is always an exception.
These exceptions are NEVER advertised rent-to-own but are the result of special circumstances.
So you ask, "Why can't you get me into a special circumstance!"
Ok, here we go. Simply to get started...
Firstly, I don't want to get shackled to a shipwreck. This means your situation must be assessed and the conditions established for success. This boils down to finding the correct answered to:
1. When will Matthew be qualified for a home mortgage?
2. What is the amount of a mortgage for which Matthew be qualified.
3. How long will it take
4. How much does Matthew have in the bank TODAY.
This information will be established by a preferred lender.
Advertised rent-to-owns are focused solely on question 4.
At this point your capability has been defined. Now your capability needs to be matched to a homeowners need. This connection takes place via the private and confidential contacts real estate professional have within their networks of professional and private communities. In many cases you must be patient while a need is discovered OR CREATED!
When the proper match of problem and solution is found, you will find yourself right in the middle of a real opportunity. There will be a heavy investment by others who are depending on your success. No one wants to be disappointed when the options date arrives. If the process does not start properly, failure is predictable.
I know. I heard that thought,,,"I'm not going to go through all THAT!!"
Too often the most indelible lessons in life are the result of injuries suffered. The choice today is yours to make. If you enter into a rent-to-own unprepared you will exit much poorer.
There simply is not ambiguity in the advise provided by myself and the other professionals who have responded.
It does not mean all your rent is applied to the purchase if you decide to buy the house, and if you don't , or can't, buy it, you simply walk away!!!
These deals usually favor the seller, NOT the buyer........and there is some sort of non-refundable deposit which you would lose if you didn't, or COULDN'T, buy the house at a later date.
if you don;t qualify now for a loan, for whatever reason, you better be absolutely certain you will qualify down the road..........please..........educate yourself first before proceeding!
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!
The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?
This is the Ultimate Caveat Emptor!