A blogger asks: Can you tell me about Renting to own?

In response to renting to own a home: Someone that will let you rent to own typically will only let you do so for a specific period of time. Renting to own can be a great option if you are positive you will be able to fulfill the terms of the agreement and be able to get a mortgage and close on that house within the terms of your contract. When you rent to own, aka, do a contract for deed as it can also be known as, requires a down payment. So if you are not able to qualify for the mortgage when it is time to close on the purchase, you would lose your down payment. Being able to fulfill the terms mentioned above is going to be take a sincere commitment. If you are not sure you are going to be able to fulfill the terms, you might be better served by putting yourself in a position to qualify for your mortgage first. This will also require a sincere commitment, but at least you will not be risking your hard earned down payment in the process. If we are just talking about developing credit where there is no established credit, this can be done typically in a 12 month period. But you must be ready to make this your priority to be successful. The plan that is laid before you has to be followed strictly to achieve success in developing your credit in that period. Now once your credit is in place, we have programs for those who have not owned a home in the last three years. We refer to those people as First Time Home Buyers. And we have up to $15,000 to go toward their Down Payment and Closing Costs. These monies are forgiven at the rate of 20% per year and is completely forgiven at the end of the 5th year. So once you stay in your home for five years that $15,000 never has to be repaid. So you can see, this is a very worthwhile goal. I hope this is helpful information. Sincerely, Tom

 

April 30, 2017 by · Leave a Comment

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