Financing in Chicago>Question Details

Jennifer, Other/Just Looking in Chicago, IL

rent to own programs

Asked by Jennifer, Chicago, IL Thu Jul 19, 2007

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13
There is a program that is managed by CHAC and has income restrictions. There are also a number of grant programs that assist with downpayment when you are ready to purchase. In this buyer's market, you may be able to find a highly motivated seller who would be willing to do a lease/purchase contract. You will need to show the owner that you are actively working on your credit and ability to purchase. I have an Investment Group that is willing to work with Lease Purchase candidates.
2 votes Thank Flag Link Fri Jul 20, 2007
Here is a very good article about all dangers that this program could have:
http://www.quickenloans.com/mortgage-news/article/640.html?l…
I hope this will help you to re-evaluate many things that you know or thought that you know.
1 vote Thank Flag Link Fri Jul 20, 2007
Does anyone know of any good programs in the St. Louis Mo. area?
0 votes Thank Flag Link Wed Jun 1, 2016
Good information. Try looking at our website for some more information on rent to own homes and owner financing homes.
0 votes Thank Flag Link Thu Sep 15, 2011
When you look to rent to own homes you can contact lenders to see if they have any programs that may help you to eventually buy that home of interest.
0 votes Thank Flag Link Sun Mar 13, 2011
Jennifer,

I am in Texas, but what I see here is that rent to own, lease to own, and lease purchase is nearly always a recipe for disaster. If you are not ready to buy, just lease. Lease as cheap as you can stand and save the difference between the rent and what you can really afford for a down payment in the future. You'll be much better off. We just see too many scams and bad deals on the rent to own front.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Tue Mar 1, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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The article Stan provided gave a lot of good points on the reasons families should stay away from using a rent to own to buy their next house.

Remember though in some situations it may be beneficial for a family to use a rent to own to purchase a house. The main hurdle is understanding exactly how a rent to own works.

Try doing a search on "how does rent to own work" for further information
0 votes Thank Flag Link Mon Feb 28, 2011
In today's lending enviroment it may be almost inpossible to find any loan with a FICO score below 500 so I see why you may be looking for this kind of option. Real estate appreciation is projected to be rather flat for 08 so you have a year to work on your scores without having to worry much about being priced out of the market by appreciation. Please consider working on the source of your current scores. Here is my blog on how FICO scores are calculated. You are more likely to win at the credit game if you take time to understand how to play by the rules.

http://localism.com/article/113308/5-areas-that-determine-yo…

Good luck to you! Greg Z
0 votes Thank Flag Link Wed Dec 12, 2007
Never do a rent to own. They are not beneficial for either the buyer or the seller. Always insist on a land contract.
0 votes Thank Flag Link Wed Dec 12, 2007
This is a spammer promoting another site. Real estate pros should abstain and save your breath.
0 votes Thank Flag Link Sun Nov 11, 2007
my credit score 426, i have a open chapter 13th I am looking for a home to rent option to buy
0 votes Thank Flag Link Mon Oct 29, 2007
In my area rent to own is not always a great deal for buyers. In fact the legislators have done their best to do away with this arrangement. There were lots of bad guys involved in the business. Sometimes they didn't own the house they were renting to you. So if times got bad and they didn't make the house payments the house could get foreclosed and you get kicked out, while the landlord keeps your original deposit. Also the contract was often written so that you rent for two years and then it is your obligation to find financing. If you can't get it then they have the right to keep your deposit and kick you out since you haven't fulfilled your part of the contract. Some also promised rent credits at the time of purchase at the end of the term, but some banks won't accept credits unless you were paying above market rent. Have a realtor walk you through the transaction and determine if it is a good deal for you. Typcially what I advised most clients now is that if you want to rent---RENT....if you want to BUY...BUY.....but don't mix the two transactions. If you want to RENT now and BUY later, then do that, but need not be the same property.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Jul 21, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Jennifer, What is it that you would like to know about rent to own programs? Let us know here at Trulia voices and I am sure we can come up an answer to you question.
0 votes Thank Flag Link Thu Jul 19, 2007
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