Does rent to own on a conventional financing property make sense to ask for?

The house were looking at buying has been on the market for over 200 days and is now offering a 3k allowance for carpet and paint. Long story short we cant get a loan until April but need a place by end of February. So we were considering asking the owner if they would take a rent to own option or owner financing since its been out there for so long. We have credit but very little of it(which is why we cant get a loan for another few months) but our rental history is great and we have alternate forms of showing our repayment history. Does it even make sense to ask for other forms of financing?
(0) | asked by: Julianna Gonzalez | share | 7 months ago | Report
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answer by Karen Robertson    |   Visit My Website   |   Contact Me
If the home is vacant...why not just ask if you can lease it for 6 months. That would cover your time line. With lease option you have put up front money and if you walk away...you loose it
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answer by Corey Ballew    |   Contact Me
Julianna, it may depend on the current owners situation. If they occupy the property and need it to sell in order to pay off mortgage and buy next property it is unlikely. If house is vacant and they either own it outright or paying two mortgages they might be more flexible to do a short term lease with option to buy. Most sellers would want lease term to be between 3-6 months and some assurance that buyers are eligible for a loan. If credit issue is related to credit score I have lenders I have worked with that can do 580 and up or portfolio loans for individuals with no established credit or self employed with 1 year of being self employed rather than 2 years that most banks would require.
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answer by Corey Ballew    |   Contact Me
Julianna, it may depend on the current owners situation. If they occupy the property and need it to sell in order to pay off mortgage and buy next property it is unlikely. If house is vacant and they either own it outright or paying two mortgages they might be more flexible to do a short term lease with option to buy. Most sellers would want lease term to be between 3-6 months and some assurance that buyers are eligible for a loan. Are you currently working with a Realtor? I have found some buyers not working with a Realtor and only working with their bank are limiting some of their options on financing or not shopping around on lenders. It depends what the credit issue that other lenders may have same underwriting requirements such as 3 year anniversary from a short sale for example. If credit issue is related to credit score I have lenders I have worked with that can do 580 and up or portfolio loans for individuals with no credit or self employed with 1 year of being self employed rather than 2 years that most banks would require. If you have any questions or need some local resources let me know.
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