Home Buying in 23502>Question Details

blancap79, Renter in Virginia Beach, VA

I am interested in a rent to own home. Is it a good idea or should I just wait until my credit is fully repaired and then buy a home?

Asked by blancap79, Virginia Beach, VA Thu Dec 13, 2012

Virginia Beach, VA

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13
HI,
We can tell you how you can easily get your Credit Scores RAISED up Legally Fast.
Also we can get you TAX FREE DOWN PMT GRANTS UP TO $40,000.00 , so your
Monthly Payments will be VERY LOW with NO MORTGAGE INSURANCE PREMIUM.
April Ford,
Broker 735-7771
0 votes Thank Flag Link Wed May 15, 2013
I prefer the term, "work and save to own." The best way to "rent to own" is to rent for as short a period as possible, restore your credit, and save enough for an emergency fund and possible down payment so that you can make a traditional purchase without all the smoke and mirrors associated with many rent to own schemes. I work with a lender that offers real solutions and proven strategies to repair and restore your credit, the only true path to sustainable home ownership. In other words. avoid the temptation to "rent to own" and work diligently to make yourself eligible for realistic Home Ownership. Good Luck and stay the course...you can make it happen sooner than you think! I just closed on a home today where my buyers are paying a total of $842 for a monthly mortgage (with no down payment and no out of pocket closing costs) for a 3BR/2BA nice home that would rent for $1300. At just a 4% rental inflation rate, that $1300 rent would grow to $2000 in only 9 years whereas the buyers' principal and interest payment would never increase for the 30 year term of the loan.
0 votes Thank Flag Link Fri Feb 1, 2013
Depending on your situation you may be able to purchase sooner than you think. I work closely with a local lender and he will be able to give you information applicable to your situation. Call,text or email me and I will provide you the lender info. Michael W. Snead, Realtor,Nancy Chandler Associates, 7572866757.
0 votes Thank Flag Link Fri Feb 1, 2013
Let me say that rent to own options are usually for homes in areas that won't usually sell. Right now if the home is priced right and in good condition, it should sell. A rent to own option isn't the best for you because not much of what you pay monthly goes to owning the home. Another thing is if the home were a good one to buy, it would sell in this market. I see rent to own in areas where the homes just don't sell so fast. Truthfully, I don't see many of them out there. I would work hard on repairing my credit and have a world of options open to you then. It would be better to wait than settle for something that in the long run, would not be a good investment. I hope that helps you.
0 votes Thank Flag Link Fri Feb 1, 2013
Run away... fast. Bide your time, be patient and ultimitely get what you WANT not what you can only GET. You'll be glad you waited.

All my best,
Tom

Tom Benvenuto – William E. Wood and Associates
Real Estate Sales – RESIDENTIAL - COMMERCIAL
cell:757-749-0507
office: 757-588-0213
fax: 757-213-9773
toll free: 1-800-627-0213
email: tombenvenuto@williamewood.com
web site: http://www.williamewood.com/tombenvenuto
Licensed in Virginia
Office located at: 1208 E. Little Creek Rd. Norfolk, VA. 23518
0 votes Thank Flag Link Wed Jan 30, 2013
Protect your hard earned money, rent to own is a pacifier at best, usually a very expensive one. I have never closed a take out loan for one after the rent period is over, read the info I linked below, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri Dec 14, 2012
A rent to own is great for a "trial run" at homeownership. After all, if you hate being an owner you only stand to lose 2% of the purchase price (your typical down payment). If you bought a standard house and qualified for a loan, and you didn't like being a homeowner, well, you're screwed. You're stuck. You'll have a foreclosure if you want to walk away. So a rent to own is great for a trial run at owning a house.

We do rent to own houses in Hampton Roads. The bad part is we have very very little inventory because they move very fast. So let's say you wanted a 4 bedroom 2 bath house in a particular school district. If you needed a rent to own, it's not very likely you'll find your dream home in any reasonable time frame. I always suggest to my rent to own clients (we've got 1,400+ of them) that they fix their credit and buy a home the traditional way if they need that specific school district or a certain house. With a rent to own the inventory is very limited so you don't have a lot to choose from. If you're willing to wait and fix your credit, do that first, then go shopping for the right house instead of having to settle for a rent to own home only because you couldn't find any other ones available.

We get about 1 new house every other month or so. That's not a lot to choose from... vs the thousands of houses that are listed for sale.

Drew Hitt
0 votes Thank Flag Link Fri Dec 14, 2012
Simply put, I'm not a fan of the rent to own option. With very few exceptions, buyers are only seeking this option because they can't qualify for a mortgage and sellers are only willing to offer this option because their property is LIKELY overpriced and the terms are very punitive to the unqualified buyer. Rent wisely and work hard to get yourself qualified to buy so you can benefit from the very favorable buying terms that accrue to the well qualified buyer. Good Luck!
0 votes Thank Flag Link Thu Dec 13, 2012
There are not many "rent to own" options on the market, but my opinion is that if you found one on which you and the seller agreed to the price and terms, it is a better option than a straight rental. The seller would be taking his property off the sales market to rent-to-own on your behalf, so may expect a different arrangement than just a straight lease. He may expect a non-refundable down payment in addition to the customary security deposit. If for some reason you did not close on the property, the seller may keep that deposit. You may find it beneficial to come to terms, however, on a purchase price now for a future closing because prices are lower now than they may be in the future, so this could be a good reason to enter an agreement like this. I'd be happy to help you find a home that may offer this option, or to answer more questions. Just let me know!

Dora Lee Taylor, GRI, SRES, SFR
Certified Buyer Representative
William E. Wood and Associates
doraleetaylor@williamewood.com
(757) 456-1713
0 votes Thank Flag Link Thu Dec 13, 2012
Very few houses for sale offer seller financing (i.e. rent to own). I would work on repairing your credit and also socking dollars away for downpayment, closing costs and future maintenance costs on your new home.
Good luck, KK German, Wainwright Real Estate
Web Reference: http://www.kkgerman.com
0 votes Thank Flag Link Thu Dec 13, 2012
I have a lot of experience with rent to own situations and can explain all the pros and cons to you if you would like to give me a call at 757-717-4283.
0 votes Thank Flag Link Thu Dec 13, 2012
Have you consulted a mortgage lender to find out how your credit is?if not, there are some lenders who may be able to help you depending on your particular situation. Call me for additional info?Michael 7572866757
0 votes Thank Flag Link Thu Dec 13, 2012
Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
0 votes Thank Flag Link Thu Dec 13, 2012
I can't buy outright because I still have some credit problems that need to be cleared up. My credit score is 633 which isn't high enough to use my VA home loan. Im tired of paying rent for something that is never going to be mine and just want to put my money towards something that will be. I was asking because I don't want to do rent to own if it's not guaranteed to be mine eventually.
Flag Thu Dec 13, 2012
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