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Rent to own homes

Hi guys!

I’m not sure about you all but saving for a down payment for a mortgage is close to impossible these days! I used to own my home but then sold my portion to my roommate (we weren’t getting along anymore). I didn’t get much from the buyout, basically enough for first and last months rent and DD.

My boyfriend owned his home too but after he divorced, they sold and gave all the profit to his ex so she could buy a new home with the children.

We really want to get into a home this year but saving $20,000.00 for down payment is just not doable right now. Does anyone have any info or perhaps has gone through the process for rent to own homes? Any tips or recommendations would be amazing!

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21 Responses

  1. I can’t speak to it accurately anymore, but I recall looking into rent to own a few years back and it seemed like a horrible financial choice.

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  2. Rent to own is a horrible way to go. Best bet is to sit down and write out a budget. Include after tax income from all sources, figure out where every penny goes and decide what you can live without while you save for your down payment. As a former banker I have helped many people get into their first, second, third, etc home. While $20,000 may seem like a lot it is an attainable goal and the wait is much, much better than going with rent to own. I have had clients who borrowed their down payment and depending on your situation that may be something to look into as well.

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  3. CMHC may be able to help. Also, call a broker….maybe able to add down payment to mortgage

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  4. You’ve got to be very careful with this. Prices are dropping and you may lock yourself into a crazy deal with little or no benefit. Equity is questionable.

    Get your own Lawyer, ask about this even being feasible. Once you know what to do, talk to a Realtor. You may be able to find a seller willing to negotiate this. Rent to own usually means the seller will carry financing. What kind of interest rate? Payments? Home maintainance? Insurance? Taxes? I’m not sure anyone would be willing to do that these days. People just want out of their homes as a seller.

    But make sure you’re not getting taken to the cleaners.

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  5. There is no legislation to protect you for a rent to own. Make sure you have everything drawn up legally and reviewed buy your own lawyer. I got taken for close to $25,000 with a rent to own and not even the courts could help.

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  6. Dana McVey Dana McVey says:

    I don’t think you need quite as much for a down payment. I would suggest waiting until you can save for the down payment. It would be helpful in the long run. Do as other posting suggested and do up a budget and you would be surprised to find how much is being wasted and cut back to add to your savings. Good luck.

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  7. Lexci Krahn Lexci Krahn says:

    Kelly Johnston is your place still available?

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  8. We signed up to Rent to Own years ago through a company and ended up losing all our money. Definitely get a lawyer involved if you’re looking to do it.

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  9. The purpose of a rent-to-own (also known as a lease option) is to get you saving for a down payment while giving the ability to live in the home you will eventually buy. It can be an excellent option for those who need to take forced savings approach to budgeting for their down payment, but you absolutely need to ensure that you understand and are able to meet the terms of the contract. I am currently looking for lease option tenants. Contact me if interested (or simply have more questions about this strategy)!

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  10. I was in the same predicament – hard to save for a down payment. I spoke with the folks at Collin Bruce Team and they got me a mortgage that I could afford and assisted me with getting financial assistance for the down payment as well (you have to at least have SOME money saved though!). I would recommend talking to someone like that before you make any firm decisions. Good luck!

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  11. Tina Conlin Tina Conlin says:

    DO NOT rent to own …if for some reason you dont meet the terms of the contract (purchasing after 2 years etc) you loose all the money you put in to it!!!!.. your better off living in a super cheap place and banking as much as you can…

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  12. Robyn Jewell Robyn Jewell says:

    Don’t be a fool , save your money live within your means and look around for the best mortgage rates at real banks. Not brokers not sharks not rent to own . Be responsible .

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  13. Go talk to Collin Bruce Team, it’s not rent to own… They can give you a small loan to cover 5-10% for the down payment. And they lump it in to your regular payment

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  14. Any good lawyer will advise against Rent to own for an option.

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  15. Scott Gill Scott Gill says:

    Go buy from Daytona Homes, or pretty much any builder.

    They do some shady paper shuffling to get you in their homes with nothing down.

    The jist of it is that they have you sign a contract for All the possible upgrades. Send it to the bank, get the mortgage approved then you “change your mind” and downgrade from all the extras to the basics.

    In essence, the builder is loaning you the money.

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  16. Please go speak to Collin Bruce Team!

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  17. It’s actually not legal for a company to say you are renting to own. What they do is take your money and put it in a savings you still have to live somewhere and pay rent it will still take you as long time and it’s still to expensive for most ppl do do it.

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  18. Look at the mess people got into with Reidbuilt’s rent to own program. The builder went under, and the homeowner got screwed!

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