Home Buying in Warrenton>Question Details

Aquilla, Renter in Warrenton, NC

How likely is it for a property for sale to consider rent to own?

Asked by Aquilla, Warrenton, NC Mon Jul 23, 2012

I am in need of a home but in this economy coming right out and buying one is not in my range. I am renting now. I reason that as much as I pay for rent I could be on my way to owning my own home now. What is the likelyhood that a realestate company would consider rent to own.

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Do you understand what a rent to own is and how it works? It is not like renting a tv for 5 years and then it's yours. You have to get a bank loan in a year or maybe 2 to be able to buy it, no loan no buy and you would lose the option money you put up and added each month to your rent. It is never a good deal for a renter and it can be profitable to a seller if the renter never is able to get that loan to buy it. When home values are going down it is even harder to make these work for you so don't throw your money away, rent now and when you can really buy then buy.

You will find it very hard to find a rent to own because most sellers need to sell and not become landlords with the real risk of you defaulting and them being stuck having to sell the house again after you living in it for a year and not doing it any favors while living there.
0 votes Thank Flag Link Mon Jul 23, 2012
I agree with the first 2 answers. If a buyer came to me and requested this of my seller, the first thing I would do is get my sellers attorney involved. I cannot write a contract for a Lease Option; only an attorney can.

I do have some clients doing Owner Financing, but this is pretty rare. The Buyer would need a large down payment to make it work for the Seller and the Seller has to own the property with no mortgage. This just doesn't happen very often.

Save your money, payoff bills, do whatever you must to improve your credit. Good credit and debt ratios is key to buying!

Shirley Kelley
Keller Williams Realty
Waynesville/Maggie Valley NC
0 votes Thank Flag Link Mon Jul 23, 2012
Tim is right, setting yourself up for a fall. Check it out in great detail with your lender before doing this, the mortgage underwriting guidelines are very specific and not at all what you would expect. Don’t lose any money trying to work around the system that is there to protect you, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jul 23, 2012
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