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Hi Natalie. Yes you do. In the rent to buy option, then aim is mostly to get enough juice to finance the property later on. While you are making the payments, they house will be in the owner's name. After you close the deal after the final payment, then the name on the deed will be changed ( a whole different process altogether). Good luck.
Please note the content is not intended to be, legal or investment advice. You should consult a licensed attorney or realtor for advice regarding your individual situation."
Be careful with Rent to Own in todays world there is research that needs to be done to protect yourself. If they are upside down DONT MOVE FORWARD! I personally believe seller finance property aka land contracts are going to be the wave of the future for our Florida market. Your question has many possible answers. Short answers are... if you have a refundable deposit you are renting. If you have a locked in sales price, non refundable deposit and closing date you have a lease before a sales contract. When you have the closing the property will be in your name. *a seller has to own a property free and clear before they can close on a property. Otherwise there is a risk of an acceleration clause in the mortgage of the seller. This can put you in danger. Don't attempt this on your own. There is a ton of fraud out there right now. Use a professional!
Just depends on what the owner requires a deposit or not. In most instances the seller will require a non refundable deposit to help ensure you actually purchase the home at the end of the lease period. Be very careful you may stand to forfeit several thousands of dollars.
A formal downpayment or an amount credited to the down payment every month.
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If you live in a rent house an there is a option to rent to own the home do the landlord need fix what is wrong with the house.as far as maintance like windows doors floors n plumbing.
I agree with Vivianne when it comes to Rent-To-Own. But if you can find the right seller that is willing to finance, now is a great time to buy. If you aren't able to qualify right now, but may in a few years? You have options but your not going to get the terms the banks are offering, if the numbers make sense I say go for it. I bought my house seller finance and my name is listed in the public records as owner, I only will lose if I don't make my payments. Find a Reatlor that really understands the ins and outs of transactions like these.
What made you attracted to Rent-To-Own? Is it the illusion of easy home ownership? Most rent-to-own are overpriced because Sellers do take the risk and want to be compensated for it. But YOU, the Renter also take a risk. Even if the Seller is current on the payments, he/she may stop being current the day after you sign your Rent-To-Own contract. Often the renter/buyer finds out many months later when the house is in foreclosure - it means you just lost your downpayment and perhaps a Home that you fell in love with to some unscrupulous Seller.
Also, statistically speaking, most rent-to-own buyers purchase another home than the one they contracted. FHA loans require 3.5% down. Why not purchase the traditional way? As a bonus, you'll have a huge inventory of homes to choose from. Good Luck. Vivianne Rutkowski, Coldwell Banker Residential Brokerage
As a seller who has done that I must strongly agree with Dana on the "skin in the game' comment. As a young investor in a recovering market in the early 80's I tried both ways and if the buyer/tennant in the rent to own deal has little to lose, why not walk after getting behind on payments. I'm happy to help you with your specific question if you contact me. Thanks and good luck.
Without deposit its not usually in the best interest of the sellers to allow first right of refusal with a regular deposit as you would see in renting. A seller (usually) to consider a lease purchase wants to see that you have "skin in the game". Be sure you know if the title/deed is clear before you do anything. If they are upside in their mortgage YOU WILL LOSE! I have seen this with renters who gave thousands only to have the sherriff knock on the door. Be sure to work this type of transaction with an attorney's office, real estate company, or title company if you are not sure of what youre doing.
Most sellers will require a downpayment. While you are renting, you should save towards a downpayment. You must qualify in order to purchase the home home. When you do close, your name will be recorded by your county as the homeowner.
The downpayment will depend on the Seller. Most likely they will require a downpayment. While you rent, you should make sure you are also saving towards a downpayment. The Seller wants you to be qualified, you must be in order to purchase the home. The home won't be in your name until you purchase and everything is recorded at your county department.
Yes, your downpayment is based on your loan, not being "rent to own" or straight out purchase. As far as the property being put in your name, the property will remain in the current owners name until you close and the transfer is recorded at the county.
I'm sure that the seller would like for you to put down a deposit for the purchase but it is not a requirement. As long as the seller and buyer(or tenant and landlord) agree to the terms, either way is fine. You will find that in most cases that the seller/landlord requires a securty deposit to protect them in the event that the purchase transaction does not go through.
Ultimately it is up to the seller/landlord on any downpayment requirement. Typically a seller would require some form of deporit to be later applied towards purchase price. The property would not be in your name with a rent to own, not until you actually close on the sale of the property. Soemtimes the seller will offer to finance the property themselves (vs. obtaining financing from a bank/mortgage company) in this case the property would be transferred to your name and seller would hold deed of trust as collateral.