my family needs rent to own properties. we are trying to build our credit back up which knocks us out the box of buying right away. Can anyone help?

Asked by Meliss Ashley, Egg Harbor Township, NJ Thu Aug 15, 2013

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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri Aug 16, 2013
Rent to own is probably not what you expect. In this type of transaction the underlying assumption is the seller will be able to perform in addition to the tenant/buyer. Be careful putting up any large sum on a rent-to-own, most buyers and sellers are under the impression whatever deal they put together will be accepted by any lender when it comes time to actually purchase a home, not true. The mortgage underwriting guidelines are very specific and an underwriter may not agree with the terms on your original lease option. You may think all or part of the rent paid goes to down payment, not necessarily how it works when it comes time to get a mortgage and close the deal.

There is a lot of information on the link below. I hope my observations keep you away from harm, good luck.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
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Hader Rivas, Agent, Northfield, NJ
Fri Aug 16, 2013
Hello Meliss,

Unfortunately rent to own homes are not as easy as you may hear they are, especially if you're hearing about them from those late night infomercials. We don't have inventory for rent to own homes, only in rare cases would an owner, whether renting or selling, be open to that and allow us to publish it. The best thing you can possibly do right now is repair your credit and save as much money as you can. If you don't know where to begin then I'd be more than glad to assist you in getting started. Feel free to call me. Good Luck!
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