Buying our first personal home

3 Replies

In Washington state, would doing a subject to or rent to own/lease option be a good idea? This will be our personal residence for a few years and when our credit is better we will get a better place.

My understanding of "subject to" is that it comes in handy when you've already purchased several properties and are struggling to get conventional financing for your 10th property. Since its your first home, conventional financing is the best way to go especially if you're planning to stay there a while. If there are problems with your credit, any deal you do is going to cost you more than if your credit was good. For example, you won't get the best interest rate when applying for a mortgage. My gut feeling is that you should focus on: 1) improving your credit score, 2) Downsize your lifestyle as much as you can in order to pay down any pesky consumer debt and put money towards a down payment and 3) spend time learning as much as you can for your future career in real estate. I don't want to be the person to throw water on your fire, but consider just taking 12 months to build a strong foundation.

@Wendy Noble

Thanks for the info! I do have about 5% saved for a down payment already and am currently looking to wholesale as many properties as I can get my hands on to pay off that little debt I have left. 

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