Have an opportunity to purchase a townhouse in a rent to own situation. I am looking for advice to help me.?

The situation is this. The place is one year old. Current owner paid $179,000. I have been proposed a situation where he will sell to me after two years for $205,000 with no closing costs. (A portion of rent over the duration of the two years will be applied towards this.) My rent over this period would be $1000 per month which is lower than his current morgage and lower than the morgage I would have if I tried to obtain financing to purchase today. This will give me an opportunity to set aside money in a savings to put a small down payment on the place and allow me to get my finances and credit in line. I would be taking a risk that the property would appreciate to that point by that time. Other units in this community are going for around 190,000 now of the same features. I will be a first time home buyer at that time. I feel like I need to get into the real estate market now so I have an opportunity to move into larger and nicer areas by the time I have children. Please offer adviceHave an opportunity to purchase a townhouse in a rent to own situation. I am looking for advice to help me.?
Wouldn't it make more sense to rent for 2 years while you save $, and than buy the town home, or one like it, in a typical transaction?





It seems like the only benefit to you here is that you COULD save some money IF prices go up more than 10% in the next 2 years. I guess it MIGHT make sense if your typical rent for a similar property was close to $1,000 and you were getting a significant amount of credit from your rent payment.Have an opportunity to purchase a townhouse in a rent to own situation. I am looking for advice to help me.?
go for it, it is to your advantage. You will be buying the property under-market value 2 years from now.
A lease to own is a great option for someone who can't get a mortgage right away. It is basically to give the person time to establish their credit, job history or whatever they need to be able to qualify for a mortgage.





If I were you, before you do this rent to own, call a mortgage broker and tell him you want to purchase a home. He can pre-qualify you. If you can qualify for a mortgage, then you are better off to buy a home. You can probably get an FHA loan which will get you a very low interest rate. That will give you a low monthly payment. If you buy your own place, you have the tax write off, you can choose the home that you want and build equity for yourself, not the other person.There are many loan programs out there and just about anyone can get a mortgage these days.





If for some reason, you don't qualify for a mortgage, then go for the lease purchase.