Hello ladies, I have a question I'm currently trying to get my finances in order to purchase a home. I'm currently coming out of an chap. 13 bankruptcy so within the next year or two I plan to buy. My quest. is do anyone know about or have done an rent to own before? I just want to know if it's worth it? Or should I just stick to mainly buying a home out right? TIA

I looked into rent to own but as a homeowner. My realtor, who was also my friend, basically said that as a renter, even with a contract, the homeowner could easily "take the money and run".

Since you are looking to buy in 2 years, have you looked into NACA or Acorn? Check their websites. Also, most cities and counties have programs.

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It is the terms of a lease to own contract that usually makes standard home purchasing a better option. And usually the sale price is much greater than the value. I know these from my personal experience with a schiester (sp) who supposedly was helping me keep from losing my home several years ago. Turned out to be a very bad contract on so many levels for unsuspecting tenant. And I mean very bad .
Majority of the time a LTO is advantageous to seller only. Even something as simple as one late payment can ruin your ability to purchase a LTO home if the contact is so worded. My advice to you should you decide to take the LTO route, but I hope you don't, is to read the contract very carefully and be SURE u understand the terms! The lil extra you may be asked to pay that "goes toward your downpayment" could be put in your savings. I believe that method of downpayment assistance is of no value unless owner financed.

In a real estate class I took as part of my curriculum, the real estate attorney teacher strongly discouraged us from being a party to LTO contract.

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Thanks a lot ladies it makes more sense now, I just want to make the right decision and choose carefully I don't want to get stuck in a bad contract, I'm going to google to see what kind of programs is out there thatll help me I just need a starting point to get me working toward my goal of homeownership Like I said I'm just coming out of a bankruptcy and tryn to move forward from the all the mistakes tht I made as far as credit, I just want a permanent place that My children can call theirs, I was contacted by a company that wanted me to go though credit repair services first which was the cost of my First born to clean my credit I declined are those type of services creditable? Or even worth it? Again thanx to the ladies who commented I appreciate it.

Acorn and NACA don't consider credit in your interest rate. They require that you pay your bills. Both of them offer below market interest rates, no down payment, no PMI. Acorn has a salary cap and NACA has a home price cap.

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This is good information because I am looking to buy a home myself in the next few years. I have made some mistakes in my past credit wise and I've been working on paying items off nowhow would I go about getting into one of those programs?

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Thanks a lot I'ma look into both of them.

For both programs, you go to a Saturday orientation which is about 4 hours long. You sign up on their websites. After the orientation, you sign up to meet with a counselor. That will be months out, so make sure you call periodically to see if you can get an earlier date.

My initial workshop was 4 months out. I called daily to see of there were cancellations, and got one in a few weeks (with NACA). I don't remember what it was for Acorn.

There are fees for both, under about $10 for your credit report.

That was as far as I got. I went through both processes when I was in Los Angeles. There was no way I could afford a house or condo on my salary.

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I would suggest save until you can buy. I've heard horror stories about rent to own programs.

Also do as much research as you can - get with a reputable realtor or broker who can help guide you through the process and also help prepare you for it.

Good luck.

I have a little background in bank mortgages, and typically a bank won't even consider you for home ownership until the bankruptcy has been discharged for 3 years. Not 3 years from when you filed, but 3 years from when it was discharged which is usually a few months after the filing. During those 3 years, make sure you pay your bills on time and try to get some type of revolving credit to assist with your credit rating. Also, work on saving money for a down payment. There aren't as many programs where you can secure a home with little to no money down as in years past. The banks want to see that you have a nice nest egg in the bank and that you're able to put money down. Leasing to own a home is not very beneficial for the renter. It is a great thing for the homeowner though. I would suggest you just rent traditionally while you're rebuilding your credit. Then you can get a conventional or FHA loan without all of the loopholes involved in leasing to own. FHA is a little easier to secure but has more stipulations and typically you need at least 3.5% down for a FHA loan which is less than conventional loans.

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