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Answers (3)
- wetdawgs
- Contributions:26804
A seller willing to consider "Rent to own" is occasionally mentioned in the comment section. Rent to own tends to be a losing proposition for the purchaser, so think hard about this one.
Some common features:
a. A non-refundable deposit - perhaps 10% of the purchase price.
b. The only amount going towards the purchase is the amount above and beyond fair market rent. This is non-refundable should you chose to bail.
c. The owner could stop paying the mortgage any day, and you are screwed.
d. The purchase price is set when you sign the papers, so you could find prices have dropped and you can't get a mortgage.
Very few of these "rent to own" come to closing. Protect yourself. Rent in the regular manner for a couple of years, build credit, save up a down payment.
Some common features:
a. A non-refundable deposit - perhaps 10% of the purchase price.
b. The only amount going towards the purchase is the amount above and beyond fair market rent. This is non-refundable should you chose to bail.
c. The owner could stop paying the mortgage any day, and you are screwed.
d. The purchase price is set when you sign the papers, so you could find prices have dropped and you can't get a mortgage.
Very few of these "rent to own" come to closing. Protect yourself. Rent in the regular manner for a couple of years, build credit, save up a down payment.
- Jackie Beardsley, "Listingforless"
- Contributions:163
There are so many variables that can be involved with a rent to own or 'lease option'. You have the lease agreement, the option (to purchase) and the contract itself (purchase). I personally feel if you want to buy a home that is being offered for sale but rent also, go ahead and rent. If five or six months down the road you feel that you would like to buy that home then you can certainly work that out. Sometimes in a lease option you will be asked to pay a little more in rent and that money can go towrads your downpayment but if you don't buy the seller can choose to keep that. That is only one scenerio, there can be many. Good luck!
- Steve Williams, "SteveWilliamsRealtor"
- Contributions:7
I don't have any listings like that, and they are very scarce. For one thing, you really have to hire a lawyer to draw up the contract for such a transaction - there are no promulgated (standard) forms you can use. If you're trying to do a lease-purchase agreement because your credit scores are weak, you'd be better off leasing for a year or two, cleaning up your credit, THEN buying a house without any strings attached.
Do you list any rent to own listings
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