Home Buying in Little Rock>Question Details

p_martin_85, Home Buyer in Little Rock, AR

My husband and I are interested in a rent to own home in the little rock area. Is there anyone who can lead me in the right direction?

Asked by p_martin_85, Little Rock, AR Wed Feb 27, 2013

My husband currently has a credit score of 516 and I have a bankruptcy on my credit. The bankruptcy has been on there since october of 2012. So our credit is not in good shape, however we are working with a lexington law firm to rebuild credit and improve credit score. We have three younger children and are in need of a home in a nice neighborhood. Please email me with any information and guidance. I appreciate it. p_martin_85@hotmail.com

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Debra (Debbie) Rose’s answer
Are you aware of exactly what is involved in a "rent with the option to buy" agreement?

I have a feeling you aren't, as many consumers think they simply pay rent, then all that rent is applied to the purchase if they buy the home, and if they don't buy the home.......... life goes on.
It doesn't work that way.

This type of agreement usually favors the seller, and it involves NON-REFUNDABLE deposit money on your part , and/or an amount of rent OVER and above the usual rent - money you will lose if you are unable to complete the sale at the end of the term.

If you don't qualify now (which you clearly don't)..........please wait until you know you will be approved for a loan before risking your hard earned money!

Once your financial house is in order, then buy in the normal manner.

Best wishes...........
0 votes Thank Flag Link Wed Feb 27, 2013
Not exactly sure what type of rent-to-own arrangement you're wanting but I might have one posibility. How much per month are you looking to pay and not go over?
0 votes Thank Flag Link Wed Feb 27, 2013
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!

Good luck and May God bless
0 votes Thank Flag Link Wed Feb 27, 2013
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