Rent vs Buy in 60652>Question Details

Janise Cooper, Renter in Chicago, IL

I want to try rent to own do you think that is a good way to go if your credit history is not that good?

Asked by Janise Cooper, Chicago, IL Fri Apr 4, 2014

So, right now me and my husband is renting a 5bdrm house with 2brms. I want to be able for us to own our own home and I know that we are not able to do that this year but would like to by next year. Do you think that this would be a good route to go?

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Rent to own is really not a good idea, therefore consider fixing whatever is preventing you from purchasing outright. 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.
2 votes Thank Flag Link Fri Apr 4, 2014
Rent to own makes no sense- if you don't qualify to buy put your time into fixing your financial house so you can in the future.
2 votes Thank Flag Link Fri Apr 4, 2014
jancooper - so glad to read below that you decided to put effort into working on your finances - building up your credit and planning for the future when you can buy a home in the "usual" way!!

Good for you........I know you will reach your goal.......

All the best!!
1 vote Thank Flag Link Fri Apr 4, 2014
No, I do not think it is a good way to go.

First of all, you will have very few, if any, homes from which to choose.
Most sellers who want to sell, and CAN sell, sell now, not later.

You will be asked to give a NON refundable deposit. If you do not buy the home for ANY reason, you will lose that deposit.
You may also be asked to pay rent OVER and above the usual rent. Only that extra rent would be applied to the purchase (IF the bank will allow it).
You lose that extra rent,too, if you do not complete the purchase.

"Rent to own" usually favors the owner, not the buyer.
If you have financial issues now, you better be certain you will qualify for a mortgage at the end of the term, or you risk losing money.

What I think you need to do is SIT down with a reputable mortgage rep and explore your options.......see exactly what is standing in the way of you buying a home in the "normal" way, and work on a plan to improve things.

Rent to own is NOT an easy road to home ownership - there are a number of potential pitfalls - make sure you are fully informed, as most consumers do not understand how it really works.

Best wishes
1 vote Thank Flag Link Fri Apr 4, 2014
thanks rons!! I totally agree with you, too!
Flag Fri Apr 4, 2014
Debra covered all the points flawlessly. To reiterate, rent to own is good for only the seller, not for you. Rent UNTIL you can own is a much better strategy.
Flag Fri Apr 4, 2014
Thank you, for your responds
I was thinking about that wanted to know if we should go that route. We will just have to work on fixing our credit to try and qualify for a loan to get a house...
Flag Fri Apr 4, 2014
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