Home Buying in Easley>Question Details

Kristina Jac…, Renter in Easley, SC

Do you have any properties lease to own?

Asked by Kristina Jackson, Easley, SC Sat Jul 27, 2013

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5
Good afternoon Kristina,

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!
0 votes Thank Flag Link Thu Aug 1, 2013
Thanks Ron but I would not say we're desperate. Our finances are fine & we have no problem paying for bills because we live with in our means. But yes we have problems with our credit & have been working with our credit union to fix theses issues.. We are only looking to lease for a year then we will be straight. And the only reason we are looking is 4 years ago our 20 year ago was in a deadly wreck & now needs a caregiver & on Sept 14 he s marrying his Middle School Sweetheart. Therefore we need more room & want to help them start their marriage off right.
0 votes Thank Flag Link Thu Aug 1, 2013
Lease/Option
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!

Good luck and May God bless
0 votes Thank Flag Link Thu Aug 1, 2013
$5000.00 would be easier on my family. But you can call me if you think you can help 864-617-0864.
0 votes Thank Flag Link Thu Aug 1, 2013
Hi Kristina,
I have a rent to own if you are still looking.
Please let me know. 513 254 7784
I think I can work with that down payment.
Flag Mon Mar 31, 2014
We do have some listings that are willing to consider a lease to own option. How much are you willing to put down?
0 votes Thank Flag Link Thu Aug 1, 2013
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