read a bookUnsure what to do about buying home.?
Talk to your landlord. If he agrees he may apply your rent payments as a down payment and when you have enough equity, you could apply for a loan and pay the landlord off. An agreement would have to be drawn up spelling everything out. An attorney should be consulted
A rent to own is usually with the original owner holding the mortgage and title until the property is paid for. This should still be done with a lawyer's know-how. A payment schedule can be set up with a current interest rate applied. Banks usually don't have too much to do with it, since the owner holds the mortgage. However, beware, there could be some downfalls. If you default on payments, you could forfeit the purchase of the home, and all money paid would not be refunded to you. Also, some holders of the title make a stipulations that you can not do any home improvements or alterations to the property until the mortgage is paid in full. You will have to decide at that point if you want to wait the term of your mortgage (maybe up to 20 years) before you do any major remodeling. The terms and conditions should all be worked out legally with a lawyers advice.
I doubt that's what your landlord has in mind. If you were living in a rent to own house (which i have never heard of) then he would have told you up front...nobody would pay their mortgage for somebody else.
He wants to sell it to you. If you get a good mortgage rate and a good deal on the house there is a chance you will pay about (probably a little more) what you are paying in rent.
Talk to your landlord.
ok read the first 5 answers and they are all over the place, pay attention:
1. pay all rent by check, keep copies of the rent checks front and back of cancelled check showing paid on time as agreed, RECEIPTS DO NOT CUT IT, whether its this property or any property, mortgage brokers will help you with what is called a rent receipt program,
2. be sure you have a signed lease/option to purchase that has been in effect for minimum one year
3. be sure it states a sales price, and what you want to try to negiotate is a price less than the appraised value of the home. there fore you will have some equity in the property value when you go to conclude the purchase.
4. maintain good credit, scores must be at least a minimum of 600 for this program with no charge offs or collections in the past 12-24 months, no bankruptcys, foreclosure, or repos allowed.
5. dti debt to income should not be over 40% of monthly income, this means car payments, credit cards, principal, interest, property taxes, and homeowners insurance cannot exceed a total of 40% of gross monthly income, say you make 2000 a month 40% would be 800, does not involve utilities, food, clothing, etc, ie. when you take out car payment 200 a month, credit cards 100 a month, property tax 100 a month home owners 60 a month ur left with 340 a month for which you wont buy much maybe 35-40000 house. Figure $7.00 per thousand per month with good credit as a payment principal monthly, good luck, by the way i do not know of a bank that will do a rent to own situation, this is mostly handled by secondary lenders through a mortgage broker, be carefull, lots of them are scam artist
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