Rent-2-Own: 1.How long before loan, usually? 2.What % of rent goes towrd downpmt? 3. On a $100K home how much $ to move in?

Asked by jnb_tucker, Omaha, NE Mon Dec 10, 2012

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Mon Dec 10, 2012
To answer your questions: 1. Depends on your current situation. If there are credit issues and you are working with a good credit repair company and you are not creating new derogatory entries, you
can be ready normally between 6 months and 2 years. 2. This is dependent on two things depending on how you are talking about it. Between you and the seller, it depends on your contract. For loan underwriting purposes, the amount you get credit for rent is the amount over the market rent rate that you are paying to the seller under the contract as down payment. Just because the contract calls it down payment, doesn't mean the underwriter will give you all that amount if you aren't paying the market rent rate. 3. If you use USDA on a rural property, $0. If you use VA, $0. Using FHA, you would have to have $3,500.00 of your own money (or gift) in the deal. Using conventional, in most cases you would need 5% down ($5,000.00) or if you qualify 3% down ($3,000.00)

I hope that helps. If you have any other questions, you can call me at 402-333-5432 or email me at


Dennis W Clark
Freedom Lending, LLC
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Thanks Dennis.In my case it's not due to credit, but due to being new in area/state so i want to make sure i like the NE, Omaha life, and new jobs lender won't lend right away & i don't want to buy till i'm sure i'll like the area. May do straight rent instead but wanted to see what R2O was about. Thanks
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