You are being very prudent acknowledging the predatory nature of the rent-to-own market. Some state have actually outlawed this practice. The reason is the overwhelming number of instances leaves the citizen much poorer than when they entered the agreement. This is the predictable outcome when a citizen feels desperate or feel they have no other options. Nothing could be further from the truth. But you must start right.
The reason you are seeking rent-to-own is because you can not get bank financing. This is serious, so please give it great attention. Identify a lender in your area who has a history of investing in the community through mortgages and small business loans. Meet with a lending official and enroll in their credit restoration program. They willl be able to tell you, if you execute you side correctly, when you will be eligible for a mortgage. Why is this important? It brings you face to face with reality. Rent-to-own is often a costly maneuver to escape reality. You may hear in 18 months you will be able to save $8,000 and purchase a home with a $175,000 mortgage. You see, now you know the exit to a lease option if that is still your choice. Here is how to find the bank. Go to:
You greatest ally in all of this is your real estate professional. This professional will be able to connect you to investors who are not predatory in their owner financed deals. If you call those investors who have the signs on the street. you are in very treacherous waters.
Wishing you the very best.
Annette Lawrence, Broker/Associate
Remax Realec Group, Palm Harbor, FL