STORM2K

The hubby and I are thinking about this, we've lived in an apt for 9 years and funds basically are in the toilet, but we need to get a move on. Has anyone ever rented a home to own and if so how did you find it?

Any info would be appreciated.

I would not do that. The owner ends up making a fortune off of you. It would be best to go through a bank or a mortgage company. JMO.

Well, we have no credit either and I think a mortgage would be next to impossible as we have no funds for a down payment, thats the problem

Have you talked to a mortgage company or a bank. They could tell you all your options.

I did that once when I left my husband. I moved into a condo with an agreement that my lease payments would go towards my downpayment if I decided to buy it after a year. They were brand new, so the builder didn't mind working with me on it. I didn't end up buying it since I bought a house with Marty that next year.

I would tread carefully with something like this angelwing. It might help if it's a piece of property that someone you know owns. I don't know what the financial requirements would be if you were to try and get an FHA loan.

Good luck!

In my experience, renting to own is nearly always a very bad deal for the buyer. If I were you I'd set a goal to get a down payment put aside and just keep renting until I hit that goal. In the meantime, as you save, do what you need to do to get your credit cleaned up. It's not fast, but you'll be a lot better off in the long run.

angelwing wrote:Well, we have no credit either and I think a mortgage would be next to impossible as we have no funds for a down payment, thats the problem

Just no credit at all? There is such a thing called first time buyer.

You need to speak to a Mortgage Specialist as they will be able to advise you better. You would be amazed who can qualify for a mortgage these days, you may have more options that you think. You are right to want to move though...renting is just wasting money.

Yes, you don't want to pay off someone elses home. Those plans are tricky at times.

Rent to own generally means the seller owns the property outright and after a specified time frame your rent becomes your down payment. At this time the seller usually carries the paper.....meaning that the seller holds the note. The seller becomes the banker. You become the property owner but owe money to the seller. Interests rates are usually higher and there may be restrictions on what you can do to the property.

The easiest way to find someone in this business is to call realtors and ask.

Don't be discouraged! Talk with local banks and also with BUYER'S AGENTS. We used a Buyer's Agent and the whole process was amazingly pain-free. Use the internet to full advantage, looking for good, wholesome advice on getting and building credit - and what NOT to do as you get close to buying a home. Never fall for all of those "credit repair" or "super-duper make tons of cash" schemes. Lenders and banks are eager to get people into houses - seek them out - there is a home out there with your name on it!

Just don't get caught in a "Contract for Deed" deal. This usually requires a reasonably small down payment, mortgage payments that you make to the seller, and a balloon payment a couple of years down the road. Sounds pretty good but----nothing says the seller has to make the mortgage payments. If he defaults and the house is repossessed you are scr****. You have no recourse but to sue the seller and that usually takes more money than you have already put in it.