I am not in a place to buy right now. Are there alot of homes that will take the rent to buy route?

Asked by Jill Dushkevich-Simone, Milltown, NJ Mon Dec 30, 2013

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Julianne Sic…, Agent, Old Bridge, NJ
Mon Dec 30, 2013
If you are not in a place to buy right now, because of the down payment and closing cost. There are State programs available to assists you and become a first time home buyer. The state will grant you an additional loan for the down payment, after living in your home for 7 years the downpayment is completely forgiven. You can also ask for a sellers concession to help with the closing cost. If you have any questions call me on my cell phone at 732-688-0800. I can help you become a buyer and not a renter
1 vote
yes its a lot of things. we short saled in 2009 so are credit isnt that good and we have been renting ever since. Afraid to buy again i would say. You can not save when renting
Flag Mon Dec 30, 2013
Anna M Brocco, Agent, Williston Park, NY
Mon Dec 30, 2013
Rent to own opportunities are rare as most owners prefer to sell outright. Since rent to own properties may not be listed as such, consider working with an agent of your own. Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright; or simply continue renting until a purchase can be made....
1 vote
John Sacktig, Agent, New Jersey, NJ
Mon Dec 30, 2013
Hi Jill,

I answered your other question on purchasing a foreclosure!

Quite honestly, rent-to-own does not really exist. (Although I have prepared 1 potential rent to own this year), it does not really exist and if it does there are no bargains. Most rent to own situations are directed to exactly your situation. Some landlords will rent you a property on this thought, but there are a lot misconceptions attached. A few notes on what I have seen and “heard” about.….

People think that the rent goes towards the purchase.
No. It usually does not. There are two sets of papers drawn up, a lease and a sale contract. You agree on a rent for the property and then pay a premium towards the deposit (down payment) and if you back out, you usually lose the premium.

People think the landlord will hold the note.
Usually not. The landlord wants to get paid the sale amount.

People think they will buy the house are current market sale prices.
No. Landlords will often sell these homes at a premium. Think about it, why would a landlord agree to sell a house at a low price and then a year later the house is worth 50k more.. Homes that are rent to own are often higher.

In reading your response, you have hope and want to purchase a home, I understand and feel for you. But, you are better off, saving some money then look for loan programs that will help you buy that home. Send an email or call, we can connect you with a mortgage person that will review your status and see if there are programs available to you to help you buy a home!

Tread lightly with the rent to own thing, you may get into more grief than you want.

John Sacktig
Orange Key Realty
Direct: 732-213-1409
0 votes
The Cal Team, Agent, Milltown, NJ
Mon Dec 30, 2013
Good Afternoon Jill!!!

Feel free to contact us on all your real estate needs! We specialize in the Milltown Market and would love to help you in your search!

Call 732-729-9000 today!

Have a great day!

0 votes
Jose Sanchez, Mortgage Broker Or Lender, Middlesex, NJ
Mon Dec 30, 2013
Hi Jill,

You may meet the seasoning requirements to buy again after your short sale. This would depend on other individual factors as well that we can discuss offline.

The best thing to do is come up with a monthly payment that is within your comfort zone. We can determine eligibility and see if it is possible to get a property within that price range.

Please feel free to reach out to me if you have questions or would like to talk further.

Office: 732-521-0707
Email: jsanchez@cenmarkmortgage.com
0 votes
Audeliz Angie…, Agent, Westfield, NJ
Mon Dec 30, 2013
Are there a lot of homes that allow a rent to own option - the short answer to this question is no. The availability of listings or more accurately homeowners who would give this option is, in my honest opinion, less than 3% of the market inventory.

Rent to own listings are indeed rare but plausible if:

A. You can find a homeowner who's monthly rent will be financially satisfactory to you

B. The purchase price of the home would fall into your affordability range at the time when you are ready to exercise your option purchase. This is a matter that is directly related to your debt to income ratio; credit history, down-payment, pmi - if any - and the property taxes.

Generally, you are required to give a month and a half of security; conduct a home inspection prior to renting/signing of on a RTO rental/sales contract. Plus, if the home is listed by a listing agent for the homeowner, you may have to pay a one month's realty fee - there could be attorney review fees as well since your contract is both rental and RTO.

Where did you want to buy? Depending on the county, I could follow-up and tell you how many listings will entertain this option.

Like Julianne, I recommend the Smart Start down payment Assistance Program and a generous seller's concession if you are capable of buying now - credit wise, but do not have the down payment to do so. I also recommend speaking with a loan officer who can accurate advise you as to your affordability range based on your DTI, Credit History and Income.

Here are two links that might help you with your decision and which route you should go.

Email or call me if you have follow-up questions. I have one RTO client who received a 2 year option to purchase for a house in Edison, NJ. Client rents the property for $2450. There are no overages or escrows - please see my article links for more information on overages and escrows.
0 votes
Hi Angie, we have been renting since 09 it has been very tough to be back on track when my rent has been so high. My husbands credit is alot better but not mine. Right now for the last 2-3 yrs we have payed 1600 for a 3 bedroom. I would like to stay around there or close. I live in Milltown so east brunswick and milltown are best
Flag Thu Jan 2, 2014
My husband and I bought a home in 2007 so i would need assistance for downpayment on my second home. is that possible?
Flag Thu Jan 2, 2014
I read your response to Julianne, after I posted my comment above. If you sold short in 2009, have you been able to re-establish credit? What is your rental affordability?
Flag Mon Dec 30, 2013
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