Rent vs Buy in 17543>Question Details

Nomorerentin…, Home Buyer in 17543

My wife & I have good credit but way too much unsecured debt that we are trying to pay down. We want to stop

Asked by Nomorerentingplease, 17543 Thu Jun 4, 2009

renting but have no down money. Is rent-to-own a good option at this time?

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My question for you would be do you have a plan? Often we operate without a conscious plan and the cart ends up pulling the horse !

Purchase two small notebooks, one for you and one for your wife. Commit to each other to write down all monies that are spent for one month. Then sit down and look at it together. This will show you where your money is going AND help you see if you can rechannel this spending to speed up your progress.

Next I woud suggest sitting down with a lender to see where your debt needs to be in order to purchase. This identifies the goal.

As a fellow agent of Edward Korthals, I like his advice of getting yourselves in a position where you have a solid foundation of monies in savings. Sometimes this can be accomplished by purchasing at a lower price point while interest rates are at all time lows AND committing to saving along the way. Homeownership definately has unforseen expenses that come with it.

What does your schedule look like I'd love to sit down with you and your wife and talk through some options. Best regards Deborah
0 votes Thank Flag Link Fri Jul 13, 2012
From a realtor you would expect to hear : buy now, this is a good time to buy with the $ 8000 sellers help from Obama.
However I think you should talk with a person that is not financially connected to a sale or loan.
Make sure you really can afford a house and that means more than the purchase,the insurance and the tax.
You have to be able to handle unforseen , but unavoidable financial problems , related to the house or other issues.
Remember we are in this financial mess because people bought houses they can not afford .Owning a house is part of a lifestyle , but there are many other things you need to have a good lifestyle. Based on your statement of too much unsecured debt , you might be better off renting a few more years and reduce the debt.
0 votes Thank Flag Link Fri Jul 24, 2009
Hi! There is STILL a possibility for no-money down financing, depending on the area you are looking at! One major benefit of purchasing NOW (versus lease-purchase), is that you can then take advantage of the $8000 first-time homebuyer tax credit! (You have to settle on your home before 11/30/09 to take advantage of this credit!) Rates are still great! I'd be happy to also discuss with you further some other options that can assist with closing cost help (in the form of a 'soft second' mortgage), which can be repaid upon sale of the home. It is a GREAT time to buy, and I'd be delighted to spend a few minutes with you on the phone or in-person to answer your questions and give you more details on this information! (TOO much to explain fully in a post!)

Best wishes to you as you consider purchasing a home!
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0 votes Thank Flag Link Fri Jun 5, 2009
Renting to own is a tough proposition usually. First and foremost, it is hard to find a seller willing to go that route so your home choices are very limited. It is better to be able to buy any home for sale than be stuck with the only one you can find rent to own. Next, rent to own usually involves paying a fair rent and than adding above and beyond that as "Down money". This money is usually non refundable and substantial if things change and you cannot get a loan when the time comes. At this time and with the programs in place, it may be a good idea to exhaust the buying option. The $8000 first time buyer program applies to anyone that has not owned a home for 3 years and with the FHA you can actually use the $8000 as down money. The last time I checked, the USDA still had a 100% financing option but that was a few months ago and things change. Lastly, don't accept "you can't get a loan" until you have tried several recommended mortgage brokers as they are not all created equal. I can recommend some of the best available if you would like their contact information.
0 votes Thank Flag Link Thu Jun 4, 2009
I would recommend talking to a lender that you know and trust. If you need a referral, I would highly recommend Christina Kerrigone with Wells Fargo. She is in Lancaster. She's very patient and would be happy to go over your credit information and put you on the right track to home ownership. She can be reached at 717-808-4619 or She's very friendly and very easy to talk to. There's no cost or obligation to talk to or meet with her. If you need anything else, feel free to contact me as well. Best wishes!
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0 votes Thank Flag Link Thu Jun 4, 2009
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