When buying a home, the best place to start is to hire an Exclusive Buyer Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. Visit http://www.naeba.org for a referral to an Exclusive Buyer's Agent in your area.
I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home without getting ripped. off Follow the link below.
Best of luck!
It's now 2014 and the Dodd Frank act, in effect 23 days ago, is about to affect you.
A significant component of this law is directly related to lending practices on owner occupied housing.
The existing model for Rent-to-own or lease-option, that allows the buyer to create a buying interest falls under the control of Dodd Frank. This creates such a INCREDIBLY HUGE liability for the lender or investor that such offers will simply prove impractical. Even if they complied fully, any disgruntled occupant can bankrupt the investor by responding to a TV AD that advises this attorney can stop ANY eviction or foreclosure. AND THEY CAN. Meanwhile the investor who offered you the lease/option, rent to own got hammered AND can't get you out.
That does not mean there will be other things parading as rent-to-own or lease-option...they will in reality be only rent coupled with a companion certificate of deposit.
It is possible there is a investor who is unaware of the great liability to which they are exposed. If you are that kind of person, you can trap an investor.
The reality on the ground is those rent-to-own or lease/options were simple rents anyway, the occupant just didn't know.
The outcome of the Dodd Frank act will make it incredibly more difficult for a a citizen to find affordable and financed housing without going through Wells Fargo.
ONLY lease'option, rent-to-own situations created directly with the home owner with a real estate professional will prove legitimate. The rest will quite FRANKLY be in violation of the Todd Frank act.
Follow Stan's advise and rent until you are qualified to borrow.