Espinale12, Home Buyer in North Attleboro, MA

Where can I find rent to own homes in mass?

Asked by Espinale12, North Attleboro, MA Wed Dec 11, 2013

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Sounds like someone is trying to “work around” the system that is there to protect them, not a winning move because you are not aware of how the rules will work against you when it comes time to sell or pay off the seller. Getting in is only the first move and the ONLY reason to do that is some long term goal. Pretend you go this route, what is the exit strategy? You can’t sell a rent-to-own to a typical buyer because you don’t own it. They can’t borrow money to pay you because of the same rules you tried to work around. There is a title seasoning requirement for most lenders.

After the issue that is keeping you from getting a loan is fixed and you try to refinance in order to pay off the seller, the mortgage underwriter MUST follow the guidelines you tried to circumvent, how do you think that works out? Here’s a hint, they will follow the guidelines, not the contract between you and the seller. That is only one of the reasons this method doesn’t usually work out. The other big issue is buyer optimism and timelines. The loan officer that turned down the loan application answered the buyer’s question regarding how long before I am eligible, giving the best case scenario. The buyer uses that as the time line for the rental period – poof - it takes a lot longer.

Use a worst case scenario not the best case and that improves the odds slightly as long as the contract is worded to meet the requirements of the mortgage guidelines.

I hope my insight keeps you from losing hard earned money, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Wed Dec 11, 2013
Since rent to own properties may not be listed as such, consider working with an agent of your own. Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
1 vote Thank Flag Link Wed Dec 11, 2013
It would be wise to consult with a lender to see just how long it will be before you are eligible to buy. You may get a surprise & find that you can buy now. If you already have that answer & just can't wait until you are eligible, you need to know that finding that rent to own deal is a tough thing to do & there are the risks already mentioned in the other answers. One reason it is so rare to get a rent to own deal is because most sellers are not willing to wait long for the sale to happen. It has been my experience that the majority of sellers that are in the position to rent to own usually want the rent period to be less than a year.

I hope this info has been helpful & feel free to contact me with any questions you may have.
0 votes Thank Flag Link Sun Jan 26, 2014
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