To do a lease-to-own is very complicated, and I discourage it. Rather, since you have some cash, I suggest that you offer to pay a significant down payment to the seller and ask them to finance the remaining portion of the purchase price. Depending on their circumstances, certain sellers are willing to offer seller financing until you can get your credit established to obtain a traditional loan approval. The interest rate will likely be higher than traditional loans . But, with the right assistance from an experienced Realtor/Lender, you can get a traditional loan within 1 year. There is hope. You just need to find the right opportunity. At least you are now in the right place to get some input. Any of the Realtors in this forum can help you find properties that fit your criteria. Finding the seller that will offer seller financing is the greater challenge. But it can be done. Good luck!
* STEP 1 is to talk to a lender to make sure what you need to do in order to obtain a traditional loan. * STEP 2 is to take that information to a Realtor of your choice that can help you find a list of properties that works for you.
* STEP 3 is to have your Realtor talk to the Seller's agent to see if seller financing is an option.
Brent Rice, Top Recommended Broker
The Rice Group, Inc.
I do not recommend rent-to-own situations. There are other options available, depending on what your goals are. If you're worried about being approved for a loan, there are sellers out there that will carry a note and finance themselves - you'll probably pay a higher interest rate and payment, but it is an option. My recommendation is to find a mortgage lender and get prequalified for a mortgage, so you can see how much a lender would be willing to lend, and what the monthly payment would be. With that information, you can then make a better decision as to whether you want to buy or rent. Good luck!
Point of clarification: "contract for deed" and "rent to own" (or lease-options) are not the same. They're somewhat similar and can accomplish the same goal, but they're really, fundamentally different in how they work and the protections you have.
Here's a link to a blog I wrote on how to find lease-option and similar properties: http://bit.ly/findaleaseoption
Hope that helps.
RE/MAX Premier Group