rent to own

[2003eclipse]

I guess I have some questions about it.
Is anyone here doing it what are the pro's and con's of it?
If your renting to own and move out after 5 years where does your money go. How the hell does it work?

[Kracka]

It works by you paying way too much for way too little. If you want to own a house get a mortgage.

[Hoffer00]

That is a bad option. If you decide to do it. Make sure you have a lawer go over the contract with you. Sometimes if you screw up one months rent the home is gone. If you decide to move the money is usually gone. Like I said if it is something you want to do, call someone that knows contracts and have them walk you through the contract. What exact details need to be met to stay a renter?

[2003eclipse]

ok all the things I was unaware of.
Well the g/fs uncle wants to sell his town home to me
zero down under contract to deed. Is that the same type of deal?

[EclipseGST]

Yes... It can be good and it can be bad.

The thing that sucks about it is, there is no credit involved and if you stop paying or screw up the contract, he gets the house back.

There was a guy that did this in my town, he bought a house/shop and put an Exhaust Pro's in the shop, well he got the whole place for $80k - 10 years ago. Last year he went bankrupt because he did to many drugs and the guy got the house/shop back and is now selling it for $270k.

[Hoffer00]

Have the contract writen up.
Tell heim you want to look over it.
Then have someone you trust check it out.

If it is all good. Don't F-yourself by missing a payment.

[carltalon]

Theres alot of good deals out there right now. Alot of contractors are loseing there asses one new homes right now and are trying anything to make there money back. If you do a rent to own just make shure you cover your ass like everyone else said.

[thom1301]

I'd really try and do a regular mortgage if possible. Besides the normal rent-to-own drama, you'll also have to deal with the family drama aspect (what if things don't go well between you and the GF, etc.).

[JET]

If your credit score is over 620, definitely do a regular mortgage. If it is under, then you have a decision to make. I would still lean towards a regular mortgage (probably an ARM to keep the rate a little lower) since you have full control and you don't run the risk of getting screwed by someone else.

[2003eclipse]

Yeah Thats the whole thing, I was injured at work and have been getting work comp for like a year so my wages were cut dramatically, which didn't help my credit much because when I was working I had money to pay bills but for the last year its been kinda tough. Now i'm getting Money from a settlement so bills will be paid and i'll have enough for a down payment on something but my credit can't be the greatest thats why I was looking at this option, but it sounds like a shitty one now. Thanks for the input.

[Hoffer00]

You would be suprise at what kind of financing you can get when you have a down payment.

I am in the process of looking for my first home.
You should try out a few different options banks or morgage companys.
If you get a shitty rate save some of the money and buy down the rate.

[JustROLLIN]

Joey, go check your credit score online and get a better idea of where you are at.

Also, are you going to be workig after the settlement? You need to keep in mind that even with a big down payment, you will still have a large mortgage payment each month to worry about.

[curt_gendron]

Its a great time to buy if you are a first timeer. If you think this current townhome is too much, shop around for something cheaper. I'm sure you'll find something. There is so much out there right now.

But I'd try and stay away from a rent to own. Getting a standard mortgage is gonna be a better deal.

later,
Curt