RentToOwn-HouseFinder.com
Anybody know about rent to own about a house?
We are looking at a house to rent to own. The owner owns it outright. He said it would bee $800 and half of that would go toward the purchase. Anybody do this kinda thing and whadda think?
Public Comments
- It's not a bad idea if you can't get a home loan. But by getting a home loan, you would probably save at least a couple hundred a month! In your contract, you'll need to make sure you know what happens if you are late on a payment. It may say that the landlord can then keep that $400/mo that was supposed to be going toward the purchase of the house. Generally, these types of contracts are meant to last anywhere from 1-5 years. At the end of that term, you will be expected to get a home loan, and the amount he's been saving from your rent will be applied as a down payment.
- It may take forever to pay it off. see your bank
- You should try buying it on land contract....it basically the same thing but its all in writing and you agree on the years you will pay.. and the payment amount. its a really good thing for people who do not have credit established. or bad credit... i hope everything works out for you
- I am personally buying a house rent-to-own. the most important thing you and your seller can do is have a lawyer draw up a standerd contract. you and the seller can split this cost in half if you wish. this is what I did. What you do next is have the title and insurance information with you when you and the seller come in to the lawyers office. the lawyer will have to basiclly fill in the blanks and then will ask you if you have any questions after you have read the contract. it is best if you have some questions on hand to ask him. go ahead and write them down beforehand. if the seller is unwilling to make out the contract for the home....RUN!
- I can help you,call robert @951-637-3839-thanks
- This is called a Lease with an option to purchase, or simply Lease Option. It has been an effective tool for investors to lock-in their profits on homes, but today the market is more volitle and the tenants are now calling the shots. In some instances it works out fine, but I would definitely limit the down payment in the front for the "option" to purchase the home. You never know the Option price may be more than the property can even appraise for. If you do write this up and proceed with the Lease Option I would recommend that you make the seller pay all of your closing costs and set the option at an amount "or appraised value" or you can even include a clause that if the value doesn't come in then the initial deposit should be refunded that way if the Option price is above value then you will not lose your deposit. Remember, anything goes and the landlord is probably desperate at this point.
