Is MF housing allowed in Ohio? Yes, but only in certain areas. You would need to check with the zoning department in your area to see if it is allowed.
But, in order to legally rent the basement, it will also have to meet local building codes including escape windows, private entrance etc. Before you go to far, make sure it will meet these codes or your could be fined.
Regarding the assistance program, since you are "renting" the upstairs which is a completely different unit, your income would not be considered.... more
These are two different animals, one is a liability and the other may or may not be depending on how it is written. Neither take advantage of the protection that is provided by the system that is there to protect you. But here goes, a land contract gives you more protection than a rent to own but it also creates a debt. It does however slightly improve your odds of being successful.
Rent to own isnâ€™t buying a home, it is leasing, and at a much higher cost in almost every case. Usually it is about a landlord that is cashing in on the optimism of someone that is having a tough time. I spoke to a closing attorney this morning on this very subject. He said he has written up hundreds of these puppies over the years and estimates that less than 3% ever worked out for the buyer. That means 97% of the â€œbuyersâ€ lost money. Of the people I have known that tried this I think the failure rate is closer to 99.99%. One month I keep a running total of how much people told me they lost doing this and it was over $250,000. That was just in 20 working days! AND only one loan officer chatting with people inquiring about getting approved for a loan.
I have never spoken to anyone that is trying to do one of these that understood what will happen when it comes time to pay off the seller. The mortgage underwriter is going to follow the mortgage guidelines - NOT the contract between the tenant and the landlord. Why would anyone throw away their hard earned money without investigating what happens when it comes time to pay off the seller? No idea, but I promise, someone will read this, think I donâ€™t know what I am talking about and toss away their money just because they think it will work out somehow.
It is good to be optimistic but also important to be realistic. Whatever you think the timeline is to fix the problem(s) that is keeping you from getting approved for a mortgage, triple it and that will be more realistic. Good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.... more
Hey New, one other thing: make sure you in your marketing you drive them to your website or your blog. Throw something out there and then say "see my blog/webisite for more info..." People will rarely call you from a mailer but if you attach it to something tangible they will.... more
It is really up to the lender as to whether or not they will give you a mortagage with that low a credit score. The more money you put down ought to weigh for something, but credit scores reflect a person's repayment history. If someone has a poor record of paying their monetary obligations, lenders are reluctant to take the risk of loaning to him/her. It's really a no brainer for the lenders, especially in light of the credit mess we have now in this country.... more