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
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.