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4 Bumps

rent to own

I'm a single mother of two. I don't have any help from my kids father when it comes to money. I'm tired of living in a crappy place or in an apt. i feel like i am putting my money in something and going no where!! I would like to rent to own but i don't really know much about it or how a single mother like me with little income could do it... ANY ADVICE?

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chrstny88

Asked by chrstny88 at 6:58 PM on Oct. 22, 2010 in Money & Work

Level 20 (9,613 Credits)
Answers (4)
  • I have sold houses to people on rent to own. Their payment is slightly more than the rent. But they do need to put down funds as a deposit. Usually $5000 to $10000. I have helped a number of families get into homes this way. After a set number of years they go out and get financing to complete the purchase.
    This can be tricky and it is important that you are going to be able to pay the payments and complete the purchase. Do not just trust anyone there are some not so honest people out there.
    tootoobusy

    Answer by tootoobusy at 7:02 PM on Oct. 22, 2010

  • About those not so honest people.....my neighbors (a few houses down) were doing a rent to own deal on the house they were living in. They had put a $10k down payment down and were making their monthly payments, meanwhile the real owners weren't paying the mortgage. The house got foreclosed on and they totally lost everything. They didn't even KNOW that the owner stopped making mortgage payments and was just pocketing their money until the got a notice from the bank to get out. Just be very careful who you do business with.
    slw123

    Answer by slw123 at 8:23 PM on Oct. 22, 2010

  • Usually when you rent to own you end up paying much more than you would have if you bought something outright. I recommend you seek a realtor's advice.
    HotMama330

    Answer by HotMama330 at 4:11 PM on Oct. 23, 2010

  • I would talk to a real estate agent, preferably someone with a broker's license but anyone with experience should be able to help you. As your agent (the buyer's agent) it is their job to make sure you are not signing anything you should not. Usually rent to owns require money down and a higher than normal rent. See if your buyer's agent knows any brokerage firms that will allow you to finance the whole purchase, that way you don't need alot of money down and the closing is rolled into your payments.
    CorrinaWithrow

    Answer by CorrinaWithrow at 11:49 PM on Oct. 23, 2010

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