Rentals in Chula Vista>Question Details

countryboi26, Home Buyer in Chula Vista, CA

is there a such thing as rent to own homes in the process of buying but credit needs some repair but i still don't to waste anymore money on rent?

Asked by countryboi26, Chula Vista, CA Sun Mar 24, 2013

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7
Just be careful with any rent to own situation, they tend to favor the seller. You stand to lose a lot of money when it comes to market value. I recommend having an attorney review the deal if you do it.

Chris
0 votes Thank Flag Link Mon Mar 25, 2013
I agree with Kawain. Renting and owning are very different but similiar in this regard: both utilize legally binding contracts that require your understanding and focus because we are talking about your largest household expense. Failure to fulfil your committments under either of these contracts can effect your credit and financial worthiness for a long time. Many realtors have not had experience trying to combine elements of both contracts that serves all parties. I have and I can't recommend to anyone. I have established a blog http// http://:www.rentsenseblog.com for education where I suggest an article posted entitled Priority of Rent. Neil
0 votes Thank Flag Link Mon Mar 25, 2013
Hello,

It is best to think of renting and owning as TWO very different things!!

Please avoid the rent to own trap. There are way too many what ifs:

1. What if current owner looses home to foreclosure before your lease term is up
2. What if current owner has a change in family status like divorce, marriage etc, and decide they no longer wish to sale
3. What if home does not appraise at the agreed upon sales price at the lease end term, and seller wants to HOLD you to agreed upon sales price

There are way too many what ifs!!!


RENT or OWN DO NOT RENT TO OWN!!!
Best of Luck to You
Kawain Payne, Realtor
0 votes Thank Flag Link Sun Mar 24, 2013
Cory is right, skip the very high cost of rent to own and let a good lender coach you on credit repair so you can buy at a much better rate sooner. Good luck.
0 votes Thank Flag Link Sun Mar 24, 2013
Rent -to-own isn't really a scam, but it is an investment technique used to make investors money. You pay more rent, higher than market rent, and that overage is used toward your purchase. Option periods aren't generally long, 1 or 2 years. At the end of the option period, you buy the property or leave.

What you NEED to do, is talk to a couple of lenders to find out what you need to do to qualify for a loan. Buyers don't even like to do this, but you have to know if you have a shot at getting a loan in a year or two. Your credit may need time to repair, and sometimes it can take years. If you get into a lease option without doing your homework, you'll end up wasting even higher rent than you'd normally pay. You won't pay rent at market rates, then buy a house with no more down payment. You'll need more down payment money and closing costs, especially if the market is a seller's market like it is now; you'll never know until that time arrives.

How do investors make money? They make it on the extra money you pay up front, and they bank on you not being able to qualify.

You may be able to quality with a FHA loan, since they're not so credit score driven. I have some great info on understanding and repairing credit. Just email or call me off forum, and I'll be happy to send it to you. I can send you some lenders to talk to as well.

Warm Regards,
Cory
0 votes Thank Flag Link Sun Mar 24, 2013
The market is very hot right now. Any reasonably priced home is flying off the market. A realistic and motivated seller usually wants to sell their home to a willing and able buyer within a short time frame. Like Sheryl's comment below it is most likely a scam or a home that isn't in your best interest.
0 votes Thank Flag Link Sun Mar 24, 2013
Yes. There are a large number of rent-to-own homes available.

Here's a link to a blog on how to find them: http://bit.ly/FindALeaseOption

Hope that helps.
0 votes Thank Flag Link Sun Mar 24, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
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