#1. Rent to own can be good deals for those who have been denied credit (non-W2 income) but do not have BAD CREDIT.
#2. Rent to own can be a good deal for those who strategicily benefited from a default.
#3. You will need a sizable downpayment.
There are several sources of rent/leas to own. There are those with the sign in the yard announcing this option and there are those that accept this as a soluton to an existing problem. The difference between these to is one is PROFIT driven, the other is solution driven. Selecting the wrong one will prove expensive if not catostrophic.
You should consult a multi-dimensional real estate professional to assess your options.
Be advised, there are no short cuts to fixing your credit. If this is your motive, you are destined for disappointment.
Understand. I do lease/rent optons. They are pedatory. Renter/buyers will walk past the red flashing lights, all the advise tellling them this is a STUPID idea, and with stars in their eyes think they can save more than $30,000 in two years. The $20,000 they put down and all the maintance and updates they did all belong to the owner now. Understand, there is only one game. That game is to seperate others from their money. IT is your responsibility to not let this happen with every purchase decision you make. This is a BIG issue.
So, what will you do?
Ignore the flashing red lights?
Whether you are in Rockford or Tampa.....rent to own rarely solves the problem.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Very often rent to owns don't work because the buyer often comfortable in their surroundings does not get their affairs in order and can't meet the date. And it does put you as the buyer in a non negotiable position on price. Plus, you usually need to put down a decent down payment - more than security on rent.
Sometimes rent to own does work in a rental situation as a rent with option to buy. You can potentially lock in a price and get some money toward your rental to ownership. But rental is also very competitive and if you are using an "I will buy" criteria instead of an "i can live here" you may find it impossible to meet both tasks.
My best advice is get your finances in order as soon as you can do. Talk with a lender, get some advice on credit correction and save money while keeping your nose clean. Housing will always be out there. Prices are going up and so are interest rates, but both are still at historic lows and will still mean future equity for you.
Yes, rent is throwing away money and more expensive than buying - no doubt, but sometimes it is better for you if you focus on qualifying and get to the point where you have more than less options.
You find a home. We approve it, buy it, and rent it to you. You have the right to buy it later if you want to.
THE RIGHT CHOICE FOR YOU
Buying a home can have many advantages compared to renting. Carefully evaluate your options before applying.
THE RESIDENT IS NOT OBLIGATED TO RENEW THE LEASE OR PURCHASE THE HOME. IT'S THEIR CHOICE.