Have you talked to a lender yet? The reason I ask is because I'm currently working with a couple who are moving to Austin and contacted me about finding a house to lease. We've been having a hard time finding a workable option because they have 3 dogs. I asked if they had considered buying instead. They said no because their credit union had told them their credit was too bad and they didn't have enough for a downpayment. I suggested they speak with a mortgage specialist and gave them a couple of names.
To make a long story short, they care now preapproved for a mortgage to buy a house up to $170K and we're starting to look next week.
Email me at email@example.com or call me at 512-233-9004 and I'll be happy to connec t you with a couple of great lenders who can help you either with a mortgage today or with a plan to be in position to buy as soon as possible.
Lease purchases are not out o the question, but have some distinct disadvantages. Owner financing is another option, but also can be filled with peril. Bottom line is you don't want to get into a bad loan situation just to buy today.
Call or email and I'll be happy to talk about your specific situation and options.
CARA Realty Group (PLR)
Good luck with your search.
Your best bet is to speak with a lender to see exactly what you will qualify for now. It is heartbreaking to go look at homes in one price range only to discover its more than you can afford Or discovering you have been wasting time looking at entry level homes and you can afford much more house. Do you have anything saved for a downpayment? Most lease purchase deals still have downpayments. You may be better off to stay where you are and work on your credit score and then re-visit the option of purchasing a home once your score has improved. It is easier to build good credit than repair bad credit. If you want more advice or need help please let me know. I would be happy to help you to find the right home.
If you like the option, I happen to know of a condo or few downtown that could work quite well and save you the cost of originating a new loan, as well as jumping through hoops on fire to obtain lender approval, but definitely become familiar with and develop an understanding of the process (including the benefits and risks) involved in purchasing through a "lease purchase" or owner finance; I would then find a Realtor to assist you in finding the right property- most Realtors are more than dedicated to their clients, so you'll have many to choose from in finding the right fit!
Best of luck, and feel free to contact me to chat without obligation and/or discuss available property that may match your needs.
President and Investment Specialist, Harvard M.B.A.
Austin Residential Properties
How to find a lease to own property below.
Lots of good answers and I would agree that it makes sense to start talking to a lender and see where you stand credit wise. I am a REALTOR and a Mortgage Broker and would be happy to look at your credit situation. As a REALTOR I do not originate FHA loans which would most likely be your best fit but I also work closely with FHA lenders that can work with clients with scores as low as 580.
Wish you the best of luck in your home purchase.
REALTOR | Keller Williams
Good for you about buying a home; everyone seems to be right about your first step is to get intouch with a mortgage professional. I am a mortgage banker and have nearly 20 years experience. I would suggest that you contact a mortgage professional and get your credit pulled. If you do this then you will know really how bad your credit is. I have had people who perceive that their credit was bad; but, when I checked it I found that it was not as bad as they thought. You sound as if you need someone to help you develope a plan; and, that is what I would do with you. If you have past collections that are on your report then you need some one who will tell you which ones to work on and others that you should just leave alone. Even if you should decide to lease purchase, it would be good for you to get your credit score up so that if you buy a new auto or major applicance the credit score affects the interest rate on the purchase of those items. Go to my website at TimHunke.com or give me a call at 512-762-4500.
Joe Jarusinsky, Realtor, Austin Business Journal Top Producer, Keller Williams Realty (512) 261-4415
I agree with the other answers about checking with a lender first. They will run an in-file credit check for free. The lease-to -purchase option has pretty well been eliminated. A few years ago, our governor made a requirement that any purchase contract be completed within 180 days. There are several ways to do owner financing and I would be happy to tell you about them. Really, though, if your credit can be improved rather quickly, that is your best bet because then you can choose from all the condos on the market - not just ones that will owner finance or lease-purchase.
Let me know if you want me to refer you to a lender, but the first thing I would do is pull your credit report and see what you can fix first, sometimes it can take months, but some times it is a matter of getting old information off your report-which can just take a few weeks. If you have already done that recently, your first step is talking to a lender. They can tell you more about your options and what you can afford and a Realtor can help you narrow down those options.
As a heads up however, FHA guidelines are becoming more and more strict-which limits particular buildings in Austin, but there are always options.
Good luck in getting everything in line, but if you are dedicated to being a home owner, you can do it!