Lease purchases usually result in your throwing away your money anyway; when you've repaired your credit and built up a little nest egg, you can actually choose the house rather than the situation.
Good work rehabbing that credit, by the way, Jacqueline. I think of it as an ankle sprain for a runner - you can't go off running marathons, you have to rehab it, rebuild your strength, and build up your stamina.
All the best,
As Mack pointed out, and the many professionals who will respond to your question will confirm, for most entering into a lease purchase will also result in 'throwing your money away."
There are NO shortcuts to establishing a qualifying credit history. The temptation to take a credit repair/recovery short cut will also result in "throwing your money away."
Here is a great option you should consider. Contact a local lender (NOT at too big to fail) who has a historic record of investing in your community through small business loans, home loans and refinances. These are "A" and "B" graded lenders. The 'Too Big To Fails" are all "F" rated, justifiably.
Simply enter our city or zip code and make an appointment with the lender(s) that appeal to you.
Share with them your desire to purchase and your need for their guidance to get you fully qualified for a home mortgage. They will guide you through the best sequence of steps to reduce your debt, manage your budget, establish saving and create the needed down payment. There will be real discipline required. But, very quickly you will begin to see the magic of fiscal responsibility and the security that follows. It's common sense that is very uncommon.
Now call, YOU WILL BE GLAD YOU DID!
Here it is: http://www.BankingGrades.com
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
I look at a lease purchase as a way to secure a home and not have to continue moving over and over again, to be in a home away from renters that allows you to enjoy space and privacy. Many lease purchase sellers ask for a larger deposit or in a lease purchase case, earnest money, so you want to remember that the house you find should be the one you want to purchase because that earnest money could be forfeited if you don't follow through with your purchase. It gives you a reason to treat the home as if it were yours and it lets the owner know that you are serious about purchasing. Some lease purchase sellers will also let you use a small portion of your rent towards your closing costs or principal when you close. You will get that deposit/earnest money back at closing, so you can use it towards closing costs, to pay down your principal, or use as your down payment if required. I have helped many folks with lease purchases and they always work out because you are actually writing on offer now to close later. You are required to follow your lenders guidelines on correcting your credit within a certain amount of time though. If you have any more questions just call, 901-461-8752.
Hope this helps you,