Young couple wanting to buy a home with a lot of debt... Maybe a rent to own home?

Asked by stephanie.spiesupton, Conroe, TX Sun Apr 7, 2013

My husband and I, have looked into buying a home but due to our debt (I am currently a graduate student and my husband is a full-time police officer) to income ratio have only been approved for a $100,000 dollar house. However, we want something with at least 3 bd and 2 ba and 1,500 sq. ft. We also need a big back yard. We are considering renting to own in order to get what we want.

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Bruce Lynn, Agent, Coppell, TX
Sun Apr 7, 2013
Never ever rent to own.
I've never seen a rent to own/lease to own/lease purchase or whatever you want to call it that was good for the renter/buyer.
Often it is a bad deal for both parties.

It's probably pretty easy for you to get on the right track. Rent as cheap as you can stand for the next year. You have an're in school. Enjoy the student life while you can eating Ramen. Seriously... Have your husband work as much OT and off duty as he can stand. Pay off that debt and save some cash. Lots of benefits to this. Typically it will make your relationship better. You're working on a goal together. Money will be less of an issue if you can knock it out together. He'll be out of your hair, while you're trying to crack the books.

Have fun doing it....make it a challenge to see how much you can save and make this year. I'll bet if you focus on it, you can pay off everything this year and be in great shape to buy next year.

Good luck.
1 vote
Don Groff, Agent, Austin, TX
Mon Apr 8, 2013
I would just focus on renting now and paying down your debt. Rent to own homes typically require a sizable amount of money upfront and if you are already in debt that would just add to that problem. Focus on debt elimination and buy when you are ready and can afford what you want and need. I know it may not be the answer you want but getting involved in owner financing has many pitfalls and you need to be thoroughly educated in the entire process to make sure you protect your self interests. You can go back and look over some of my past answers on what you need to do when you want to owner finance. I have went into great detail of the pitfalls and what you need to do to ensure you don't get ripped off.

Hope this helps.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 |
websites: |
0 votes
Marlene Bien…, Agent, Tallahassee, FL
Mon Apr 8, 2013
As you can see there is more cons then pros. Due yourselve a favor and give yourselve the chance to eliminate your debt in order to buy your dream home through traditional means. You have received very good advice here. My best wishes to you.
0 votes
Curly Sue, , Texas
Mon Apr 8, 2013
I do not understand how a rent to own home will give you what you want. Are you under the impression that a rent to own home is cheaper? ...that the seller won't require a down payment?

Rent to own homes are more expensive. The seller is willing to finance you because they are making money on you. If you can qualify for a loan with a traditional banker why would you consider a risky rent to own situation?
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Apr 8, 2013

just read the reply you left below offering more specific information.

Honestly - you are not ready by any means to buy a home at this time.
I don't care what kind of creative financing someone on the internet may be offering you!

$150,000 in student debt........... and only $3000 in savings?

You can't by a home without a cushion in savings, not to mention you need a down payment.
What will you do if the furnace dies or the roof needs to be replaced?

Owning a home is more involved than just paying the mortgage, taxes and won't have a super to call in if something breaks, and believe me - things break!

Save money........get that debt down.............speak with a financial advisor who can help you put the pieces together with a plan for the future....THEN- and only then - buy a home!!
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Apr 7, 2013
If you can afford (have been approved for) a home for $100,000 now, well, then that's as high as you can go.
It is what it is.

You're young and have a "lot of debt".

What you really need to do is get that debt under control..........increase your credit money and THEN buy a home when you have your finances in order and can buy in the usual fashion.

Do you really want to pile more debt on top of the amount you already have?
Don't put yourselves under that much pressure.

Whatever you NOT get involved with a "rent with the option to buy" arrangement.
Too may pitfalls, especially for someone who already has too much debt.

Forfeiting your deposit money isjust one of the many dangers lurking.

I know we live in an era of people wanting immediate gratification.....but, some things you just have to plan for, and have patience while you're working on a plan to reach your goals..

Best wishes.............
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Apr 7, 2013
Well, that's a bad idea. The thing about rent-to-own is that you have a lousy selection at inflated prices. Not to mention that you might never exercise your option to buy, so that option money is down the drain. Or the seller might go sideways and leave you high and dry. Aside from that .. .
0 votes
Don Tepper, Agent, Burke, VA
Sun Apr 7, 2013
First, though I'm a big advocate of lease-options under the right circumstances, I'm not sure that yours qualifies.

Second, you can't always get what you want. You're a "young couple." You have "a lot of debt." You may not be working (if you're a full-time graduate student, you're probably not). Lower your sights. Rent. Or buy something you can afford. As a young couple, do you really need "at least" 3 bedrooms, 2 baths, and "a big back yard." I strongly doubt it.

I'm not trying to be harsh, but just because you want it all right now doesn't mean that it's the right thing.

Lower your sights.
0 votes
Marlene Bien…, Agent, Tallahassee, FL
Sun Apr 7, 2013

I want to first start by saying that renting to own is a very risky and complex option in owning a home and I strongly recommend you hire a buyer's representative or an attorney to assist you in navigating through this option. Your interest need to be protected more in this type of option. Or you could set yourself on a budget plan with the goal of owning your home through conventional methods. Think about eliminating your highest interest debt in order to bring your debt ration down. Contact a mortgagr broker that can assist you with htis plan.

best of luck
0 votes
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