Can I make a rent to own offer to a home owner in New Jersey?

Question

I saw a house today that I found for rent in the newspaper. When I went by to see the house it also had a for sale sign from a realtors office in the front. My guess is the owner is trying to do either. I would love to buy it but don't have the money for a down payment right now and need to have a little better credit.

Is it possible to work out a rent to own situation if he's open to that and if so what exactly does that entail in New Jersey?

Thank you for your help

Answer 1

There is a saying that I have to remind my partner of all the time: "If you never ask, you'll never know." He says I come up with some of the weirdest plans for buying property, but he always appreciates them when they work.

Since he is trying to rent it, and sell it, he very possibly may be open to your offer. Try and get him to agree to put a portion of your rent towards the purchase price. Say $150 a month of your rent goes to the purchase price, and that would be your down payment. ($150 a month x 24months = 3600) The longer you rent, the more your downpayment has built up and the less you will have to finance in the long run. When you propose the deal to him, if he is skeptacle, try then to offer a rent rate that is slightly above what he is asking, or a slightly higher final purchase price.

If you do get him to agree, be sure that all the terms are spelled out on paper, including the timeframe you have to purchase the home, and the amount you will purchase it for, your monthly rent, and how much rent will go towards the purchase.

Good luck.

Answer 2

2

Answer 3

it's possible. however, "rent to own" may not be something the owner is willin to do.

your best bet is to get prequalified at a bank or mortgage company, that way you can see if you DO qualify to buy the home. if you do, proceed!

if not, do what you need to do to put yourself in a position to buy later, and give yourself a goal. say, one year, to fix your credit and save up enough for a down payment.

also remember, if you rent (not rent-to-own), then this money will NOT be applied to the sales price of the home, should you be able to buy it later on down the road.

good luck with this!