In 2006, the Texas legislature virtually outlawed rent-to-own schemes, because too many people were scammed out of their money. You can still do one through an attorney, but the chances of actually owning the property some day are still slim. Here's why:
1. When you get ready to buy, your lender appraises the property. If the agreed-on price exceeds the appraised value, the Seller can say "Sorry." "You lose". Or you keep renting.
2. Most contracts stipulate that if you are ever late, all bets are off. If you run into a problem, you lose.
3. If the Seller stops paying the mortgage and the property is foreclosed, you lose.
A better strategy is to fix your credit by working with a solid local lender who will show you exactly what you need to do. Save your money for a down payment while you are boosting your credit score. Then take advantage of these low interest rates and buy yourself a nice home.
Here is a thoughtful article which explains the change in depth.
Doc Stephens, REALTOR
If that's truly the case - you may not like what I have to say, but.........why not work on either improving your credit scores, or saving up money...or doing both, if needed, and then proceed with trying to buy a home.
A rent-to-own scenario involves non-refundable money. If you don't qualify NOW - you'd better make darn sure you qualfy later or you will lose that hard earned upfront money.
If you find owner financing, the interest rate will be high, and you still run the risk of problems down the road.
Get yourself into financial shape before you take on the added burden of home ownership.
Owning a home is more than simply paying the mortgage, insurance and taxes.......things break............maintenance is expensive......you really need a cushion before you dig a hole too deep to get out of.
Just my 2 cents.........I wish you al lthe best in the future....