Rent to own used to be a very popular phenomenon. Today - not so much. Purchase money is much easier to come by then it was years ago (though much tougher than just a few years ago), and few homeowners have the equity or cash flow necessary for such an arrangement. That said, the market is now in a position where such an arrangement is becoming a potential win win for buyers who are repairing their credit, and sellers who haven't been able to sell. I would highly recommend speaking with an experienced agent from your local market - contact me if you do not have one, I do have a partner down there - who can help you find sellers who maybe haven't considered rent to own simply because it's so uncommon they've not thought of it. This will save you the pain of wading through the scammers and bottom feeders and ending up in a dead end. Rent to own will typically include the following:
1. A decent deposit that will be applied toward the purchase price, but forfeit if you are unable to complete the purchase within an agreed upon timeframe - say 12 months - 36 months
2. A slightly above market sales price
3. A small portioin of the monthly rent applied toward the purchase
So, step one is definitely going to be getting in touch with an experience agent. At the same time, you'll want to get in touch with a professional credit consultant who can help you repair your credit quickly. This is going to save you months and months in th eprocess and likely a lot of money, too.
I'm not a fan of owner financing either...
Rent for a while, save your money, get your credit squared away.
Start by finding a good Realtor. Are you trying to do this on your own? I hope not. Please know there are scams all over the place that look completely legitimate. I network with Realtors and can find one for you in Cape Coral Florida. Buying a home without a realtor is just not smart. Really.
The search is the same but in our MLS there is a financing section. We can see if those terms are available.
Green Home Realty
After you talk to a Loan Officer, then I would talk to a Realtor.
Other items to be concerned about would be the Appraisal. Will the home appraise when you go to cash out the Seller and what happens if it does not? Also, find out if there an existing Mortgage on the property. What if the Seller defaults on the Mortgage? The Lender is in first position and can foreclose. What about the money you put down and are paying every month?
The good news: Lease Purchase, Lease Option, Rent to Own, or Seller Financing terms can be a win/win for the Buyer and Seller. It is a great way to sell a home right now and it is a great way to buy a home right now, if done correctly.
Here is a link of homes/condos for sale that offer creative purchasing terms.
There are a couple different options when contemplating the rental of a home for future purchase. Each involves two legal documents, the lease itself and then either an option or purchase agreement. The option gives you the right to purchase the home at a specified price, for a specified time in exchange for consideration (the option payment). The purchase agreement is a normal purchase agreement with an extended closing date which is typically at the end of the lease. In most cases, the best use of either of these type of agreements is to allow the purchaser time to either sell an existing residence or sort out credit issues that is preventing financing at this time.
A lot depends on your particular situation and it is something you should discuss at length with a professional RealtorÂ® who can fully explain this process to see if it makes sense for you. Remember that we will be ruling out all short sales and foreclosures which currently dominate much of the market in Cape Coral and the surrounding communities. Another option that you may consider is owner financing which you can find but typically you will need a significant down payment of at least 10%. I can tell you that in most cases I find that clients are better off renting while repairing their credit and making a purchasing decision when they have a solid foundation.
I hope this information is helpful and if I can offer anything additional please feel free to contact me at your convenience.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
I'm a Lender in the Fort Myers area. I would first start with trying to get pre-qualified. This process is free and quick. if you go to my WEB Site and complete an application online I can let you know what you can qualify for.
If I can't get you qualified than I can refer you to one of my preferred Realtors that I work with who can find you a property where the Seller would become the Bank in terms of financing.(Sleer Financing) I most cases you would have to put down 20-30 % of the puchase price and the rate would be slightly higher than traditional Bank financing. You may also have what is called a balloon payment after a specific term say 5 years. I can also be a great help to you in reviewing your financing terms. I offer this free as a srevice to my clients.
Don't give up I just completed a similar transaction and it worked out perfectly!
I work with investors that can offer you a lease to own, or seller financing.
I can be reached at 239-677-7186 if you would like to see the properties that he has available or if you have something else in mind, I can help you locate the property, he will buy it then turn around and offer you seller financing.
Thank you for your interest, I hope to hear from you soon.
to start this process without getting scammed I would recommend contacting a local Real Estate Professional.
I would like to refer you to
DEL PRADO REALTY, LLC
There is tons of free information online about how to improve your credit score.
Please feel free to contact me for any future mortgage loan needs. It would be my pleasure helping another First-Time-Homebuyer to fulfill their dream of home owner ship.
Lic. Loan Originator
Find yourself a Realtor! They can help you with all of your options even contacting Sandbill about the rent to owns they have. Your Realtor will also make sure that you don't qualify for any special finance programs through a mortgage broker. You need to be very careful with rent to own. I have heard many times of someone getting into a lease to own and the owners stop paying the mortgage and the home goes into foreclosure. You really need to have someone experienced help you with the process.
Best of luck,
If you are looking in Lee County Florida here is a link to my friends over at Sandbill Homes in Fort Myers. They offer rent to own and may be able to help you out. http://www.sandbillhomes.com/rent-to-own
Please let them know that Darin Vaughan with Jones & Co Realty referred you. Ask for Courtney.
Hope this helps.
First of all, you can contact a real estate agent. It is free for you. They'll do the majority of the work!
Secondly, if I were working with a renter who wants to rent-to-own, I would call the landlord or property managers and simply ask if they would be willing to set up a lease-option or rent-to-own. If you try this, you may be surprised that many people are more than happy to do something like this. There are tons of property owners who normally would just sell, but they decide to put their home up for rent due to the current economic conditions.
Great question! & best of luck to you and your husband!
I wish you the best!
Good luck. If you have any questions please feel free to email me at email@example.com