http://www.financethedream.com/rent-to-own-homeslistings/?utm_source=rss&utm_medium=rss&utm_campaign=rent-to-own-homeslistings Rent to Own and Improve Your Credit! Thu, 10 Mar 2011 09:23:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.financethedream.com/rent-to-own-homeslistings/#comment-507 Vincent Polisi Wed, 01 Sep 2010 14:06:57 +0000 http://www.financethedream.com/?p=1899#comment-507 Jessica, you have a lot going on here and I need to tackle the items one at a time. First, from your statements, I can only assume that the home is owned by your boyfriend's father. Is that correct? If so, that can create a very precarious situation and have a significantly bad impact on their/your relationship because it changes from being a family relationship to a landlord/tenant or lender/borrower relationship. Second, I would be very cautious about acquiring a home built in 1880 and would definitely advise a home inspection. You have no idea what types of mechanical, electrical, structural, foundational or mold issues you may be dealing with. The payment of $800 per month for a $219,000 home is a steal but it is unlikely that your mortgage payment, taxes, insurance, etc., will be that low when you finally qualify for a mortgage and take him out. With respect to your question about additional fees, since this isn't one of our deals and I haven't reviewed a contract, I have no way of knowing what additional fees your boyfriend's father may be adding in or requiring in the contract. Same thing for the percentage towards the down payment if you are dealing directly with your boyfriend's father. That is something you have to negotiate with him. Typical down payments for rent to own deals range anywhere from 2%-5% of the purchase price at contract execution. It isn't possible for me to advise whether or not this is a smart way to go without more of the details. On the surface, the only redeeming quality appears to be a low monthly payment and potentially ease of access to the property (since it is a family deal). Other than that, you are dealing with a potential money pit that you probably don't have the funds to maintain based on the age of the home. Having said that, it may have been completely remodeled and brought up to code and be a great deal. We would need more details to provide an intelligent answer. Jessica, you have a lot going on here and I need to tackle the items one at a time. First, from your statements, I can only assume that the home is owned by your boyfriend's father. Is that correct? If so, that can create a very precarious situation and have a significantly bad impact on their/your relationship because it changes from being a family relationship to a landlord/tenant or lender/borrower relationship. Second, I would be very cautious about acquiring a home built in 1880 and would definitely advise a home inspection. You have no idea what types of mechanical, electrical, structural, foundational or mold issues you may be dealing with. The payment of $800 per month for a $219,000 home is a steal but it is unlikely that your mortgage payment, taxes, insurance, etc., will be that low when you finally qualify for a mortgage and take him out. With respect to your question about additional fees, since this isn't one of our deals and I haven't reviewed a contract, I have no way of knowing what additional fees your boyfriend's father may be adding in or requiring in the contract. Same thing for the percentage towards the down payment if you are dealing directly with your boyfriend's father. That is something you have to negotiate with him. Typical down payments for rent to own deals range anywhere from 2%-5% of the purchase price at contract execution. It isn't possible for me to advise whether or not this is a smart way to go without more of the details. On the surface, the only redeeming quality appears to be a low monthly payment and potentially ease of access to the property (since it is a family deal). Other than that, you are dealing with a potential money pit that you probably don't have the funds to maintain based on the age of the home. Having said that, it may have been completely remodeled and brought up to code and be a great deal. We would need more details to provide an intelligent answer.

]]> http://www.financethedream.com/rent-to-own-homeslistings/#comment-506 Jessica Leyden Wed, 01 Sep 2010 09:59:48 +0000 http://www.financethedream.com/?p=1899#comment-506 My boyfriend and I were approach with a rent to own option by his father. The house is a 3 story Victorian house that was build in 1880. It is currently on the market for 219,000 and i think would be a very smart investment for us being that for right now we were looking to buy a home for at the max 150,000. Basically my boyfriends father said we can rent to own the house for $800.00 a month, which is appropriate for what we can afford, but is that the final price at the end of the month or is there other fees that will be added into that $800.00, also what percentage goes towards the down payment when and if we decide to by the house. Also around-about how much if any of a down payment is typical for a rent to own option at the beginning of the renting stage? Finally is this a smart way to go? My boyfriend and I were approach with a rent to own option by his father. The house is a 3 story Victorian house that was build in 1880. It is currently on the market for 219,000 and i think would be a very smart investment for us being that for right now we were looking to buy a home for at the max 150,000. Basically my boyfriends father said we can rent to own the house for $800.00 a month, which is appropriate for what we can afford, but is that the final price at the end of the month or is there other fees that will be added into that $800.00, also what percentage goes towards the down payment when and if we decide to by the house. Also around-about how much if any of a down payment is typical for a rent to own option at the beginning of the renting stage? Finally is this a smart way to go?

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