Answers by Nancy Kramer

Hi! There are actually quite a few programs that may help, depending on where you live and your income. A little more information is needed to give a complete answer, but here are some of my thoughts. First-time homebuyers may qualify for low down payment loans (FHA, USDA, or certain conventional programs); down payment and closing cost assistance, state and local first-time buyer programs (in Oregon, for example, we have the Oregon Bond program); and special financing for low- to moderate-income buyers. A good lender will be able to guide you there. Regarding rent-to-own, those opportunities do exist, but they're much less common than many people think. My experience has been that the seller is usually an investor, and they will ask for a substantial, non-refundable deposit and then will carry the note on the property for a short period of time, often only a couple of years. You negotiate a sale price at that time. At the end of that period, you refinance the seller-carried note for the price you agreed upon (you should have a formal contract in place specifying this and other terms). If you have not qualified for traditional or other financing, the seller can exercise options that are specified in the contract, including terminating it and keeping the deposit, or re-negotiating the sales price. In many cases, buyers can qualify for traditional financing sooner than they expect, especially if they use one of the assistance programs available. I'd also heartily recommend working with a lender who can help you navigate (and address) credit challenges. I'd be happy to point you in the right direction. What state are you in, and have you spoken with a lender yet?