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Jessiemay333, Home Buyer in Lewisburg, OH

I wanted to know as far as Finacial stability what is the lowest amount of income that you can have befor rentimg to own a home

Asked by Jessiemay333, Lewisburg, OH Thu Apr 10, 2014

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Good Morning @Jessiemay333. There is not necessasarily a minimum income requirement when considering a rent to own option. As far as the renting side, the main determining factor will be the price of the home & the terms of the lease agreement that the seller has set. The owning side works much of the same way because of what we call your debt to income ratio. There are parameters set by lenders that differ for every individual based on their credit profile. Once a lender knows what parameters you fit in, then they can give you a better idea of what I think you would consider minimum income requirements. I'd love to share more, but gotta run. Please feel free to contact me if you still have questions further @ tonia.godfrey@cbws.com. Sincerely, Tonia Godfrey
0 votes Thank Flag Link Thu Apr 10, 2014
Hi, I don't want to totally nay-say renting to own because there is a purpose. However, you've asked about financial stability. Here are some risks: 1) Your "rent": unless you pay more than fair market rent, nothing you pay (except down payment) would be considered towards the equity of the home. 2) If you sign a contract which sets the sales price today, who's to say what the value of the home would be whenever your contract would end?? 3) Extreme worse case: someone signed a lease to own, put down $5,000 to find out 3 months later there was a Sheriffs sale notice put on their door. That was a bad situation. You asked about the lowest income -- it doesn't matter so long as it's stable. Although, your income is what drives the loan amount you'd qualify for. Which begs the question, have you tried to get prequalified/preapproved for a purchase? You may be surprised that you could possibly just buy it versus the risk of the renting to own..? If you might have any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only. Contact and licensing information can be found on my profile.
0 votes Thank Flag Link Thu Apr 10, 2014
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