You don't want to add more financial burden if you're already under stress.
Which brings us back to "rent with an option to own"...if you don't qualify NOW, you better be very certain you will qualify at the end of the lease term.....because if you don't, and can't be approved for a mortgage, and cant buy the house...........you will LOSE your deposit.
Do you really want to risk that?
There are a number of other issues, negative issues, with this kind of arrangement.
Work on getting your scores up to an acceptable level (speak to a olender who can help you with this), and then buy a home.
Not only will you have a full selection of homes to choose from, but you won't be jeopardizing your savings.
Please speak to someone who can advise you properly so that you're on the right track....... and not swayed by promises or dreams you won't be able to reach.
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!
The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.
There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?
This is the Ultimate Caveat Emptor!
If it's due to poor credit/low income....then rethink this idea of "rent with an option to own", as you may very well be risking your hard earned deposit money.
You see, in a traditional rent /w option to buy deal, the upfront, or deposit money, is NON-refundable if the tenant does not, or cannot, complete the purchse for any reason!
Most sellers who want to sell, sell now, not a year or 2 from now..........that's why your selectionl of homes will be very limited.
Sellers who opt for this arrangement, may be in financial stress themselves - maybe they owe more than the house is worth, so they cannot sell in today's market......or their expectations are unrealistic.
There are a lot of potential dangers for the buyer in this type of arrangement...........and contrary to what you may think, all of the rent is NOT credited to the purchase (in most of these kind of deals)......only an amount over and above the normal rent would be credited...........or FORFEITED if the sale doesn't proceed.
Make sure you fully understand what you might be getting into.
If you're not financially able to buy now - I suggest you work on that first, then buy when you're able to do so.