You've already received quite a few answers. Lease Options or Rent to Own are all but illegal here in TX except if the contract is for 6 months or less. You can make an offer on a property and set the closing date out for up to 6 months and then do a lease agreement for that period of time. Your down payment would be considered Earnest Money in your purchase contract. None of the Rent however can be put toward your down payment.
Hope this helps.
Petra Richardson, Realtor
there is the possibility, as an addendum to a contract, to create a buyers temporary residential lease, You could make an offer on a home that is listed for sale, and part of the offer could be that you lease the property for a number of days/months prior to the purchase/closing. None of the "rent" however, is applied to the purchase price. It's more like rent then own vs. rent to own. If you are waiting because you are saving for a down payment or for closing costs, Call (210) 281-1604 and find out why you should not wait, and how you can save thousands by receiving up to half of any commission as a REBATE that could be used towards your pre-paids/closing costs when you buy a home using Half Priced Real Estate.
But with intrest rates so low right now anyone can own a house. Sometimes a mortage payment can be lower then the rent that you are paying.
Let me know if this helps.
Karen McMillan Realtors
service cutomized for you needs
Yes as an example I represent these types of transactions however not every agent in my office does.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Lease to own, or lease options are much riskier to get into than a simple seller finance. With a seller finance, it's straight forward. You put X amount down with payments for a set term.
The other 2, you'll definitely want your own attorney to look at the contract, or it could cost you BIG TIME. Imagine with a lease option (or rent to own), that you put down a fee upfront for the right to purchase the home at a pre-determined price in the near future. Typically, these deals require that the market rate rent is applied as rent, and anything over and above market rate is credited towards the purchase.
Remember the fee I spoke of earlier? It is typically substantial and non refundable. What if later you find a better home for you OR can not meet the terms to get financed? What if any number of things happen? you could loose your deposit, and just be out.
I can see why rent to own may sound like a good way to home ownership, but if you can't qualify or can't find an owner financed property... I would recommend putting the deal on hold and just renting until you can get financially ready to purchase with a regular mortgage.
You also have to consider... while you're making your payments to Joe Homeseller. Is Joe Homeseller making the payments to the bank that holds the original note?
Good question! Thanks for asking. Hope it works out for you which ever way you decide.