How do you find rent to own home listings?

I’m looking to rent to own a home in the northern Chicago area. I have no clue how to find listings. There are websites that come up but they want you to register and provide personal information as well as credit card info. I don’t know what to trust or if there is another method for researching this info. Any help is appreciated.

By | 2013-08-26T21:19:04+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|3 Comments

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3 Comments

  1. loanmasterone August 26, 2013 at 11:20 PM - Reply

    I am with you on providing personal information and credit card information to any site I am not familiar with. These type web sites might not even be able to assist you.

    The best place to seek in finding lease or rent to own properties is your local newspaper.

    Websites such as For Sale By Owners (FSBO) would also be a good place to seek these type properties for sale.

    Normally you would want to take caution in this type of transaction. Though there are many honest home sellers that sell their property in this manner, which is legal in all states of the United States.

    In most instances lease or rent to own contracts normally favor the seller more so than the buyer. You would be required to place a large down payment to secure this type of arrangement with a seller that is non-refundable. Missing one payment might be reason for the seller to re-claim the property, and you would have no legal recourse.

    The property is not in your name until the requirements of the lease or rent option has taken place.

    Relatives of the seller could make it difficult in the event the person you made the deal with was to die or be unable to function physically or mentally.

    Why would you want to enter into such an arrangement? Most enter these type of arrangements because they have credit problems of low credit scores.

    It might be to your benefit to check with a local mortgage lender that is authorized to do FHA mortgage loans. In applying for a FHA mortgage loan the criteria is not as severe as a conventional mortgage lender would expect. Also your credit score can be in the around the 550 mark. You also do not have to have perfect credit. The down payment for a FHA mortgage loan is normally around 3.5%. The down payment could be a gift from a relative, friend or charity.

    In the event you are not approved for a FHA mortgage loan, your loan officer would be able to tell you what you would need to improve in order to be approved in the future. He/she might also have a recommendation of someone that might be of assistance in getting your qualified.

    Another option would be for the owner of the property to finance the property. Make a contract, with the sale price, down payment, a date the transaction would be over or close, how long the seller would allow you to use his financing and the interest rate. Take this signed document to a local escrow closing agent and title company to assist you in closing the transaction according to local, state and federal real estate laws. This would place your name on the title deed. If the selle would attempt to regain the property, he would be required to use the foreclosure procedures outlined by your state.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  2. kemperk August 26, 2013 at 10:25 PM - Reply

    our pres invented rent to own
    he had no reason to
    seek, instead, the historically known Lease option

    make sure you are on a track to raise your credit rating
    go to or call 3 RE agencies and seek a buyer’s agent.
    ask about a Lease option prop valued at [your $]
    and whose payments are not more than 3/4 of what you are paying for rent now.

    am in AZ but am a
    RE broker

    can guide further

  3. Go with the flow August 26, 2013 at 10:14 PM - Reply

    Stay away from rent to own. In fact, run away.
    Consider it the scam of the decade.
    Currently there are two states trying to make this illegal.
    Yes, that is how bad it is.

    A book could be written about the downsides.
    If you stil want to get into this horrendous idea, ask the pitfalls.

    Please fix your credit, save up a down payment, and buy a home that no one will scam you out of. People have cried for months after falling for this ‘ what I call a scam’

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