Rent to own?

JNCPro3130 · December 2012

Hello everyone!

I'm new here so forgive me if this is a repeated question. My husband and I are really wanting to get out of our apartment that we've been renting for 3 years now. The down payment is the only thing holding us back from getting a house. Our credit is really good and we have no debt except for student loans.

My question is if anyone has done a rent to own. If so, would you recommend it and where did you find a house to rent/own? Any down sides? Any thoughts would be great!

LoveKiss · December 2012

Instead of thinking as the down payment being something that is holding you back, try to think of it as a way to prove to yourself that you are ready for homeownership. If you are not able to save for a down payment, how will you be able to save for roof replacement, a busted hot water heater and the subsequent flooded basement, kitchen renovations, etc.? Saving that down payment amount is really good practice for all of the planning and saving you have to do as a homeowner. If you are okay with paying mortgage insurance, then you only need 3.5% plus closing costs for an FHA loan. It's really not that big of a hurdle.

ABColeslaw · December 2012

In a rent to own situation, you still have to pay first, last, and security. You also have only a year to get the down payment together, which is almost as much as it would have been anyway, because only a small portion of your monthly rent goes toward the eventual downpayment. You'll still need to save closing costs and what not. If it were me, I'd stay put for now and start saving like crazy. My H and I were in a similar position a couple years ago. We looked into a lot of rent to own options. In the end we decided to buckle down and save. So glad we went this route.

Rent to own?

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