Rent to own...is it worth it?

Question

My fiance and I aren't exactly the richest people in the world and our credit isn't too fantastic either. I've been looking at houses in the Portland metro area, but with the economy the way that it is right now, it's highly unlikely for us to qualify for any kind of mortgage.

What, if any, are the perks of renting to own? What are the limitations? Are we better off renting until our credit gets better?

I've also heard of a mortgage specifically for people under 25. Does this exist and where can I find it?

Thanks!

Answer 1

People that do RTO's on houses are a rip off.

All you are renting and signing, is an OPTION to buy plus a hefty deposit.

If you can't buy when the option period is up, the LL gets to keep your deposit and the house and can evict you.

It's a glorified rental program with high obligation, b/c you are always required to pay the taxes and maintenance during that period as well.

You also get NO tax benefits b/c you are not paying a mortgage...the landlord retains that.

You always pay more per month than if you bought outright.

Usually only people with undocumented income or trashed credit engage in those types of transactions.

There are no mortgages that are age specific.  Not sure where you heard that from.

Answer 2

If you want to look for the portland metro area then go through this site which will help you.

http://www.homesportland.com