RentToOwn-HouseFinder.com

rent to own?

My husband and I just started renting a home and we would like to own it eventually but we have a huge amount of debt and we can not get a loan for the house. We can afford the payments but we are not able to get a loan because of our debt to income ration. The landlord has given us the option of rent to owning so he could buy a house but he needs our down payment to use for his down payment on a new house. Wouldnt he need to keep my down payment in the bank so that we could use it once we are able to buy out right and do we have the papers on the house while we are paying him, so that way we can do things to the house. And how long do rent to own contracts usuelly last for, we have a 12 month lease up in Feb. so would it last until then or could we go longer because my husband will have a better job in 2 years and I dont want to miss this oppertunity. Is it an option to add our debt into our home loan or buy and have to waite a while to refinance and then pay off the debt? Thanks

Public Comments

1. try hard money lenders they can help finance investors, buyer that banks reject. they usually finance 65% of the actual value of the home. now there ways to fix your credit by nolo.com books will explain, or just payoff your dept. within that year.
2. Most rent to own situations are a lease with the option to buy. You pay a fee for the option. It's usually not refundable, although often may be applied to the purchase price when you buy. All the terms including the length of the option are negotiated between owner and buyer, so nothing is "set in stone". The owner is free to use the option money as he wishes. You pay this fee for the "right" to buy on or before a specified date and often for a specified amount. There are so many potential pitfalls to watch out for and I must tell you after reading about your situation, I would NOT recommend getting into a rent to own situation right now. There are other ways, depending on where you live, like a contract for deed, where ownership is actually transferred to you, and your payments go through an escrow account directly to the original owner's mortgage. There are potential problems that can arise here too. And based on your situation, I still wouldn't recommend it...but if you absolutely must, at least get an attorney to handle the paperwork. The only benefit I see would be if values went up a lot between now and when you buy. I don't know you're local market (unless it happens to be Las Vegas) but even though I expect the housing market (in Las Vegas) to improve I don't expect any rapid increases. So, while I do say it's a good time to buy, I think it will still be a good time to buy in a year from now, and for you probably a better time after you've worked on some of that debt.
3. dreamer !
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