RentToOwn-HouseFinder.com

are those rent to own homes worth getting for first time home buyers?

We are looking to get a home. We have been living in a apartment for over a year and paying about 1k a month. I have heard about those ren t to own homes... I am not sure if they are worth it. I feel like we are losing money in rent.

Public Comments

1. It depends. Is it a home you would want to own? A neighborhood and school district (if you have kids) you would want to stay in. Do some homework. Maybe you can rent to own a fixer/upper if you are handy. Get it in writing!!!! The rent credit must be in writing. Make sure it promises you the right to purchase it at some price at a future date. Talk to someone familar with these contracts...real estate agent or attorey.
2. Rent to own homes is worth it if you are having credit issues/problems and if you are a high risk on getting a decent mortgage with the rent to own you are pretty much renting the house but part of the monthly rent will be used towards the purchase of that home and its less red tape
3. First time home buyers are in a unique position which means they qualify automatically for certain home ownership programs especially for first time home buyers. Talk to a Realtor about first time buyer assistance programs in your town. You may qualify to buy a home and not know it. Worth the time to invest in yourself and stop paying your landlords mortgage payment. If you don't qualify to buy a home with the assistance program, have your agent look for a seller financed home, they can help you negotiate price and terms, and if your new to real estate, sellers pay the commission so why not use the services of a Realtor.
4. be careful... real careful. With all the "owner finance" and "rent to own" scams out there. Many desperate homeowners who are facing foreclosure will pull this scam to bilk as much money out of someone as they can then not make the mortgage payments to the original lender and you wind up being evicted out on the street. Think about this first..... how many "owners" own their house outright and would be willing to gamble on someone they know nothing of, who has bad credit when they can sell and put the cash in their pocket or use it to buy a better and bigger home.
5. part of the rent goes towards the down payment, but you still must be able to qualify for regular mortgage within a certain time frame - usually 12 months