rent to own

[88jbody]

I have seen this advertised by private sale as well as by some developers.

how does a rent to own work exactly.

and I know it probably is not the ideal way to buy. but as a last option to get into a house is it even worth it?

[Weapon_R]

It's basically a system where you (the buyer) "rents" a property at an inflated price for a set number of years with a portion of your rent accumulating towards a down payment on the property. You negotiate the purchase price at the commencement of your tenancy.

After the set number of years expires, you have the opportunity to buy the home for the negotiated purchase price. The money set aside serves as your down payment.

The advantages to the landlord are big - 99.9999% of tenants will either (a) default on their payments, to which the 'down payment' money is converted to rents and are lost or (b) cannot quality for a mortgage at the time of purchase, to which the 'down payment' money is converted to rents and forfeited.

[88jbody]

so basically if there was no way to save a down payment, rent to own would be fine as long as at the end of the rental portion you could get the mortgage and you don't miss a payment

[barmanjay]

chances are they will inflate the house price aswell

[barmanjay]

0% down non-qualifying assumeables are safer,.. but still inflated prices

[88jbody]

I have not seen very many assumeables that are both 0 down and no qualifying, usually just one or the other

[Whiley]

with the rules changed now (as in other discussion thread) aren't these DOA now?



Originally posted by barmanjay
0% down non-qualifying assumeables are safer,.. but still inflated prices

[barmanjay]

All the major lending institutions now require qualifying,.. but there are some other alternative lenders that still do this thing,.. rare,.. but they are there,.. watch out,.. their interest is a little higher too.