Home Buying in Chandler>Question Details

Rose, Other/Just Looking in Chandler Heights, AZ

what are the qualifications for rent to own homes?

Asked by Rose, Chandler Heights, AZ Tue Apr 5, 2011

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It all depends on what your Realtor negotiates with the seller. Typically a nonrefundable down payment is requied up front. Depends on the area and price of the property. 3% to 5% is fairly typical in the middle TN area where I operate but again it gets down to what can be negotiated up front. Let me know if I can be of any assistance. Thanks.
0 votes Thank Flag Link Wed Apr 6, 2011
Are you asking because you are interested in renting a home to own, or leasing it or to sell it? In this market, if you can afford to purchase a house outright, probably going to be your best deal. Brenda below did an excellent job of what to expect if you are going to lease a property.
0 votes Thank Flag Link Wed Apr 6, 2011
Rose, First of all the seller must be willing to offer a home for Rent/Option to Buy or Rent/Purchase. These are 2 different scenarios. Rent with Option to Buy is when the rental payments are significantly higher than what the rent would normally be. The difference is then applied to the down payment for a future purchase by the Renter. Usually all parties agree on the sales price of the property upfront. If the Renter decides not to buy the property, they may lose what they have paid. The Rent/Purchase agreement is usually a Rental Agreement which is tied together with a Purchase Agreement. The time frame is usually 1 year. There are two deposits: One for the Rental and one for the Purchase. In either case, most sellers would want to pre-qualify a prospective buyer much like a bank would do. These transactions are usually conducted because the purchaser needs to save up money for their down payment or they have a situation where the banks are not counting their income for various reasons - Spouse has new job; On the job for less than 6 months; Changed job descriptions recently. Most sellers who wish to sell would entertain offers with those types of scenarios.
0 votes Thank Flag Link Tue Apr 5, 2011
Rose,
The qualifications are determined by the seller. You may be able to negotiate with the seller on terms and qualifications. Every case is different. The best way to find out is to go look at some rent to own homes and ask questions to help you make the best decision for yourself.

All the best,
Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Tue Apr 5, 2011
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