Home Buying in 60608>Question Details

Paula, Home Buyer in Elmwood Park, IL

Rent to Own

Asked by Paula, Elmwood Park, IL Tue Oct 18, 2011

I am currently saving for my first home, ideally it would be in the Bridgeport neighborhood of Chicago IL. I see many homes within my desired area, and would like to know how I would go about asking if they would "rent to own". Do I go through a real-estate agent? Do I contact the seller directly?

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My mother and I are real estate investors who can sell to you through a rent to own option. You can contact us at 773.357.7550 and ask for Nate or Janet. Rent to own isn't for everyone, but depending on your situation it can definitely have advantages, especially if you need to build your credit but want to get into your house sooner.
Look forward to hearing from you :]

Web Reference: http://sellhomesrus.com/
1 vote Thank Flag Link Tue Oct 18, 2011
Rent to own usually does not work out for the buyer or the seller. I would first go to a mortgage broker and have yourself pre-approved to see how you stand with a mortgage. I have several brokers I work with that has a $500 down program. If you need a list of mortgage brokers that can assist you and a list of homes
in the Bridgeport community. Contact me Debbie Bergthold-Smith Classic Real Estate 708-267-5552
I would be happy to help you.
0 votes Thank Flag Link Tue Oct 18, 2011
Rent to Own is a Lose-Lose for both parties. I dont know where or why this came about. I have never heard a good story about this. Out of the owners and renters I have known to do this, all I hear is horror stories. I would just rent now and save to buy. Avoid this.
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Tue Oct 18, 2011
Rent to own is definately a possibility. You will hear many different opinons on this, but it is possible. It is often not easy to talk a seller into it, because usually they need to money out of the home or don't want to change the circumstances. You need to have professionals involved though if you have any chance at it - realtor and attorney who know about this process and can advise you. It is definately the path of most resistance, but can work and be very beneficial for both buyer and seller. It usually though has a specific cure, something like credit or downpayment that can be cured in a very specific time - less than a year usually. Bridgeport is a pricey area in most cases. I actually know of a seller in that area who is not on the market and may be willing to consider something like that. Call me at 888-788-9544 and I can see if it is something that would work for both parties.

Suzanne Hamilton
Independent Managing Broker Owner
RE Marketing Consultants, Inc.
0 votes Thank Flag Link Tue Oct 18, 2011
contact your agent lease option tricky but it could be good deal if you think real estate prices are going up
0 votes Thank Flag Link Tue Oct 18, 2011
own to rent is generally not a good idea in Chicago - we have a capable and competitive mortgage market that undercuts any rent to own opportunities.. continue to rent until your ready to own.. and you will need 5% of the purchase price to by property generally- contact my mortgage pro for detials
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Tue Oct 18, 2011
Get prequalified first and then worry about finding a home. Credit, Income and amount of down payment are 3 main factors that lenders will look at in qualifying you for a loan. By doing this early, you can improve credit (if needed), increase income (if possible) and save, save, save for your down payment. By putting down 20% you will obtain the best interest rates, but with as little as 3.5% (FHA) or 5% (conventional) down, you can purchase. Set yourself up for future financial success by aligning yourself with a good team (Realtor, Loan Officer, and Attorney). If you need any help, I am a loan officer as well. I'd be glad to assist.
0 votes Thank Flag Link Tue Oct 18, 2011
Paula: Keep on saving. Get pre-quallified or pre approved for a mortgage first as Scott suggested, then you know what range you should look in. In a rent to own situation, you will pay above market rent to create an escrow for down payment. You will be locked in at that price even if its not worth it at the time you excercise your option. If you are impatient look to get FHA or FNMA for 3-3.5 down payment. Properties in Bridgeport are pricey even now. Save your bucks be patient
0 votes Thank Flag Link Tue Oct 18, 2011
Paula the forst thing you need to do is to get prequailified, you should meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any programs that you may quailify for an dif you dont quailify now, what you will need to do and how much time you will need so you know how long of a lase you need. Please see my list of tips below.


Once you know how long you need and what price you should look in, then you should hire a buyer broker. most lease options come from seller swho are selling their houses, they havent sold but they need to move. the agent can ask tehse sellers or their agents if they can lease purchase the home


Please see my blog with a full list of tips and advice to rent to own a home.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 18, 2011
Protect yourself as best you can. Use both a Realtor and an attorney. You will be glad you did. If the deal does not work out, and you have made substantial improvements to the property or have monies in escrow, any disputes can be better documented with those professionals involved. As a Realtor, i have talked to people who have gotten into situations and i was powerless to help.
0 votes Thank Flag Link Tue Oct 18, 2011
You can go either way. If you find a nice rental, you can always ask the owner will they be willing to sell it to you when you are ready to purchase. If you use an agent, that agent can find properties that are currently being marketed under the "rent to own" program. To me, "rent to own" does not have much merit. You are a tenant until title is transferred from the seller to the buyer. If a property currently has a mortgage on it, you have to make an assessment as to if the value is there to purchase the property. The seller may not want to come to the closing and bring money to sell his property. On a property that has no mortgage lien there may be more ways to negotiate a sell as far as type of loan and price. If you need assistance I am available.
0 votes Thank Flag Link Tue Oct 18, 2011
You can try both ways, but rent to own is a very bad idea and rarely used. It was never even discussed before the R E 'bubble' broke in 2006. Few people seem to understand how to do it and there really is no one set way, but the risks are significant to both the buyer and seller. I would avoid it and I do not think you will really find anyone willing to do it anyway.
If you cannot get a loan now just rent and wait until you can get one. This market is not about to change very much in the next 1-2 years. It will still favor the buyer more than the seller.
0 votes Thank Flag Link Tue Oct 18, 2011
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