Rent to Own Home

Rent to Own allow a part of your rent each month to go towards the down payment and/or purchase of your home. Before getting into a contract on the home, you should get with a mortgage broker and let him/her run your credit and to make sure you can you get a loan in a year's time and what do you need to do to make it happen.

Depending upon the lender you will need at least 12 months of cancelled checks to get into a cashout refinance loan based upon the annual appraised value as opposed to the stated value in the option section.

If you enter into a land contract most lenders will treat this as a refinance and may even allow you to take cash out when you refinance the home into your name.

When you are renting to own a home it is extremely important to keep documentation and proof of your monthly rent payments. Don't pay in cash. If you don't have a checking account, pay your monthly payment with a money order. Make it a priority to have documented and proof of your monthly payments.

It is extremely important that you address any credit issues you may have so you are in a position to close on your home in the future. Contact your mortgage professional before making any major purchases or changing employment while you are in a rent to own option.

What is the difference between a land contract and a regular lease to own

» DISCLAIMER: The information contained in this article on 'Rent to Own Home' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.