Advice to Finance out of my "Rent to Own" Primary Residence

[Troy Nonnemacher]

Hi Everyone,

I have an interesting situation that I could use some advice for.  My wife and I found a house for our family and used a hard money lender, that we have done some business with in the past, to fund the purchase so that we could close quickly and acquire the property below market value.

We have a 1 year Rent to Own Contract that if not executed by November will charge $5,000 for 6 months and then another $5,000 for 6 months. 

Conventional lending is an issue because I have some old credit issues from the great recession and my credit will not be cleared until November.  I also recently had an employment change as I Conceded my 50% ownership share of a general contracting firm. 

We brought $40,000 dollars to the table for the Rent to Own Closing of which $10,000 went to the lender. After closing costs we have $23,000 left in the deal that can look like a down payment in a sales agreement as well as enough equity to roll in closing costs.

The payoff is $198,000 and the appraised price is $257,000.

I would love your advice on this!!

Thank you,

Troy

[Troy Nonnemacher]

@Jim GoebelThanks for the information. The intention was to be extremely short term but my circumstances changed. My credit will be clear of a blemish in November but not likely before the next installment! Thanks again!