will rent to own deal affect my conventional loan?

[Yanting Wang]

Hi everyone! My name is Yanting, I am a newbie investor looking for my first rental property!  I have been preapproved for a conventional loan for primary residence. But I found a property that I am interested in, and the seller is willing to do rent to own. So I was thinking I can purchase 2 properties, one using the conventional loan, the other using rent to own.

my question is if I do the rent to own deal first. will that affect my position for the conventional loan? 

Thank you so much!!

[Hamp Lee III]

Welcome to BP!

One of the things real estate agents will tell you not to do while buying a home is making any major purchases.

And though a seller-financed rent to own may not show up on your credit report, there may be a large sum of money being transferred from you account to complete the deal (not sure of your terms).

I recommend waiting until you close on your primary home before completing the rent to own transaction. Speak with the owner on your situation to extend the opportunity.

Buying two properties is a “good problem” to have. I wish you all the best.