Apartments for Cheap

Questions and Answers

Your Questions About House Rent To Own

January 4, 2013

Mandy asks…

Can somebody please tell me how to find a rent to own house?

I want to have my own house but i don’t have the credit, actually i have no credit. Does anyone know if this would still be a possibility for me? I have a job. I’d like to rent to own a house.

Administrator answers:

Sure. Rent to own houses are all over the place. However, they are BAD deals. I suspect you do not comprehend the notion of ‘rent to own’. This is it, in a nutshell. You are simply renting the place, while paying ‘additional rent’ to help fund a down payment when it is time to purchase. That time frame is usually two years, at which time you end up buying the place by obtaining a conventional mortgage. If you can’t get a mortgage at that time, you lose everything you put into the place.

Un summation, you are FAR better off to rent conventionally, while saving up for a downpayment and building your credit file. THEN, you go out and purchase conventionally.

Nancy asks…

Does anyone have any good tips on finding and living in a rent-to-own house?

I’m moving within the next year and I’d really like to get a rent-to-own house or townhouse. Have you ever done this? How did it work out? Any information would be helpful. Thanks.

Administrator answers:

Lots of calls to local realtors. Make sure the contract is reviewed by an atty in case you default or if you complete the contract and the seller doesn’t want to transfer ownership, or in a worst case dies.

Chris asks…

how to get out of a rent to own house lease?

My husband and I jumped into buying a house in pa. At the time it seemed perfect. Perfect location and greatest investment. We at the time were waiting for our credit to imporve so we took a rent to own option. The house had a sign that said buy from owner when we bought it. After signing a 3 year lease with the option to buy we found out the house is ridiculously over priced and then while looking over the howard hanna realty website realied our house is still listed as an active house to buy….is this a breach of contract and should we be concerned about this??? We really would like to get out of this lease for many reasons plus our ill parents now need us closer to home. Any help woul be appreciated.

Administrator answers:

How long do you have left on the lease? What are the contract terms? Do you have to wait 3 years before exercising the option? Or can it be exercised at any time?

You do not need to exercise your option to purchase the house at the end of the lease. If you don’t, then the owner has the option to sell it to someone else.

You cannot get out of the lease. There is no breach of contract unless the owner sells the house while you are still leasing it.

Have you told the owner that you don’t want to exercise the option? Perhaps that’s why the owner has it listed.

Plus, are you sure the website is accurate? I have seen homes that have been foreclosed on and changed between real estate agents still listed on the old agent’s website, even though the agent no longer has the listing.

Paul asks…

Do I have a better chance of getting a rent to own house than a loan?

I have no credit history, should I get a credit card and get some revolving credit first, or would it be a better idea to try to find a rent to own house for the money I would save on regular rent?

Administrator answers:

The main thing to have in this case is a job that you might be able to prove for the last 2-3 years. You should also have enough for a down payment.

Having those two things you might try a lender that use alternative things to establish credit. The following items may be used to establish credit, they must be in your name, also you must be able to produce canceled checks or bank statements, also in your name that you have paid these debts for a period or more than a year in most cases.

#1 Utility bills such as electric, gas , water or sewer

#2 Rental payments (No receipts-canceled checks or bank statements)

#3 Any other monthly debts you pay that you pay each month.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

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