RentToOwn-HouseFinder.com - Will I be able to buy a house through a bank with a lease option contract with a foreclosure on my credit?

Will I be able to buy a house through a bank with a lease option contract with a foreclosure on my credit?

I am in need of advice. I have a foreclosure on record because of a bad decision and investment. I want to know if I should get into a lease option agreement versus a renting situation. With a lease option I can purchase a home running the mortgage like a refinance and a portion of the money gets applied to the purchase price. If I rent it is less risk but the all the money goes to the landlord. My question is: Will I get approved for a mortgage running the loan through a lease option agreement to avoid the foreclosure stain on my credit or is it the same as a normal purchase with the same 4 to 7 year penalties till you can purchase again? I just hate throwing my money away in renting situations but I want to make the right decision for the future and looked toward the lease option.

Public Comments

probably not through a bank. Look for a lease with option to buy where the owner finances you. Good Luck!
Not through a bank. You will need to find an owner who will want to finance the property for you. These are risky deals so tread lightly. Just a though, you say you "hate throwing my money away in renting situations". I have to ask, if you had stayed a renter, how much money would you have saved over the years? You would not have had a foreclosure on your record. Your credit would probably be in much better shape. The higher interest rates alone that you are going to pay because of the hit your credit has taken will cost quite a bit. How about the closing costs that were associated with the house? Was there any money you put towards the house? Repairs you made. this is all money lost because of a foreclosure. I am not trying to knock you so please don't take it as a personal attack. I don't mean it that way at all. It's just that renting is not that bad of a thing. There are times when renting can be the financially sound thing to do. Just because you are paying a landlord does not immediately mean you are throwing money away. Especially if you save money during that time. Good Luck!
So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than everloan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase.