Home Buying in Granby>Question Details

Matt & Laura, Renter in East Hartford, CT

Is there any Realtor in this area that knows about any rent to own properties? We are a family of four and our credit is not very good.

Asked by Matt & Laura, East Hartford, CT Fri Feb 1, 2013

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Matt and Laura,
I would be very cautious as you search for a “lease purchase”. Some sellers will offer this in their listings but usually their goal is to sell out right. In over 13 years as a Realtor I have yet to see a "lease option” or “rent to own" that really makes sense or benefits a buyer.
2 votes Thank Flag Link Fri Feb 1, 2013
I get asked this question a lot, usually by people with credit issues. I'll start by saying, there is no 'rent to own' category in the multiple listing system. However it is possible to rent a home with an 'option to buy' clause as part of the rental agreement. If you're seriously considering rent to own, look at homes for rent in the area you're considering and see if the owner will consider a purchase option. An alternative is to look at homes that have been on the market for a long time and see if the seller will rent with a purchase option. But, in my opinion, you're much more likely to get a less desirable house (perhaps the asking price is too high or there are other issues). It's also important to understand that entering a 'rent to own' agreement is very similar to signing a purchase agreement; normally the purchase price and other detaills are spelled out in the agreement and bad credit will continue to be an issue. Another thing to think about: why lock yourself into an agreement to purchase a specific home a year down the road, when market conditions could be very different? There are financial consequences associated with backing out of a purchase option, so if you change your mind or see another house you like better, there's a price to pay. My advice is to work on cleaning up your credit. FYI, I understand CRT has a financial literacy program that can help you work on your credit issues. You might want to check it out.
0 votes Thank Flag Link Fri Feb 1, 2013
Thank you for the advice !
Flag Fri Feb 1, 2013
Matt & Laura,

I would be careful of any rent to own properties. Most of the time they ask for a large down payment for you to rent out the property and if you are unable to buy it, then it is forfeited.

There are some homes that are listed for rent by Realtors with the option to purchase. But, you would need to go through a credit and background check to be approved.

I would talk with a mortgage broker to see how bad your credit is and to see how you can improve it.

I would be happy to reccomend a broker or to answer any other questions that you might have.

Jessica Tracy
CG Real Estate
860-368-8383
jessica@cgrealestate.net
http://www.jessicatracy.net
0 votes Thank Flag Link Fri Feb 1, 2013
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