For Rent in Dover>Question Details

Qmilburn, Renter in 19111

Looking for a rent to own or rental in the Kent (Dover), Sussex or New Castle area

Asked by Qmilburn, 19111 Tue Aug 13, 2013

Looking for a 2-3 bedroom townhome, home, ranch home or mobile home in the above mentioned areas. 1 to 1.5-2 bathrooms. Also price range looking to go no higher than $900/month

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Good morning Qmilburn,

Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.

Saving money for a down payment? Well, heck, you can do that on your own.

If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.

Find a way to save up on your own; not with Rent To Own.

Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks
1 vote Thank Flag Link Wed Aug 14, 2013
Thanks Trevor!!!! That's actually great advice. I'm going to save up the money myself. I just thought maybe that would be a quicker way to buy but I see now from how you explained it, that it's not. I was also looking into several programs that help with home buying. Have you ever heard of a program called "Halo America" I've been trying to find out just how legit the company is and haven't found any negative information on them, so I assume that means they are okay to work with.
Flag Wed Aug 14, 2013
The answer by Trevor has some good points, however what if values sky rocket, then the buyer wins. Also, if the rent is fair then the forced savings account is a deal.
If property values tank, you get to walk away. My opinion, rent to own beats just renting.
0 votes Thank Flag Link Sun Aug 18, 2013
You've got quite a large range of areas there. Is there one which you would strongly prefer?
0 votes Thank Flag Link Tue Aug 13, 2013
Maybe Dover....Well since I will be new to that area I would prefer an area that I can still commute easily to Philadelphia, as that is where I am now working and I don't have a car yet. Any recommedations???
Flag Wed Aug 14, 2013
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