Can the rent to own home option really be a good option. Is there any way to get rent to own home information for Thousand Oaks, and Camarillo areas?

Asked by Gatorca68, Port Hueneme, CA Thu Nov 28, 2013

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
Barry Shapiro, Agent, Camarillo, CA
Thu Nov 28, 2013
BEST ANSWER
The BEST way to Rent-to-Own is to keep your rental costs down as much as possible and then save as much for a down payment as possible, through strict budgeting. Having more income than expenses can be the vehicle to get you ahead in your dream of homeownership. You will want to save apx $15K in order to purchase an entry-level condo with an FHA loan. Credit and having a high FICO score is a necessary element in the home buying process. Be very cautious of any programs with added fees, and additional rent payments. No one is giving away their home -- but there are a lot of scams out there to watch out for. If it sounds too good to be true, well, that's because it is. Good luck with your research. Sit down with a local lender in advance to see what you qualify for -- so you can set your goals and reach them.
2 votes
Robert Baker, Agent, Edmond, OK
Thu Nov 28, 2013
If the tenant purchases the home and does not loses the non-refundable deposit and the market stays strong, then it could be a good option.
2 votes
Trevolyn Hai…, Agent, Highland, CA
Thu Nov 28, 2013
I know of a few people that have purchased their homes in that way and that made out & I also know of more times when landlords have benefited from the higher rent that they received & the deposit that they were able to keep when the renter/buyer couldn't perform (primarily because the buyer hadn't corrected the credit issues they had that prevented their purchasing in the first place).

So: yes, it can be a good option but be aware that you (and the home) will still need to be able to qualify for your loan to complete your purchase and that you want an agent to help you write the contract that knows how to structure the deal equitably.

The other agents are also correct that in a hot market that it will be very hard to find a rent to own opportunity because there are so many buyers willing to purchase now at top dollar~ so why should a seller wait?

And that gets to finding available rent to own properties in your area. Few seller's have even thought to consider it so you need to create the opportunities yourself by approaching them with an offer. You will increase your chances of finding a seller willing to do it if you look at homes that have issues making them harder to sell (i.e. have repair issues, are on busy corners, stink because the previous occupant was a cat hoarder, etc). though you will probably have better luck by approaching landlords (they are already used to the idea of collecting rent and maybe already considering selling).
1 vote
Tracy Marche…, Agent, Oklahoma City, OK
Thu Nov 28, 2013
Yes and no, depends on the end result.
1 vote
Cindy Davis, Agent, San Diego, CA
Thu Nov 28, 2013
I agree with Barry whole-heartedly. Rent to own is a concept that we see when sellers can't sell their homes. In a hot seller's market such as this, there are very few rent to own options out there.

If you are going to rent...I would stay put and save your money until you are ready to buy.

Best of luck.
1 vote
Rob Randall, Agent, Thousand Oaks, CA
Thu Nov 28, 2013
Yes, I agree with the answer below. Those are a lot of "ifs". If you don't lose your non-refundable deposit first of all. If in the end you don't buy the home you have lost the non-refundable deposit which can be a substantial loss. Also, you are betting on the market remaining strong as the market can change from when you first make the offer and set up the arrangement and you could end up in a less favorable situation.
1 vote
, ,
Thu Nov 28, 2013
NO. Rent to own never benefits you. If you can afford to rent you can afford to purchase.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes
Daniel Kim, Agent, Signal Hill, CA
Thu Nov 28, 2013
Hi,

I just wanted to give my opinion about rent to own homes...
Rent to own usually favors the owner. First of all, there are few homes even listed as rent to owns, so your selection is limited. Also you will be expected to pay over and above the usual rent. Remember all that money will be forfeited if you do not buy the home for any reason (if you can't buy at the end of the lease term because let's say you can't qualify for a mortgage, etc. you lose all of that money!)
I would say you should rent while you're working on raising your credit score/saving up for a down payment and then buy when you are ready...

Either way good luck and Happy Thanksgiving!
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more