Home Buying in 11530>Question Details

Pjs1938, Home Buyer in Dallas, TX

need a single family home; live in manhattan now; 3 kids that need a back yard, streets for bicycles, parks,;

Asked by Pjs1938, Dallas, TX Tue Apr 23, 2013

so we have 5 people in our family; we had thought about HUD; need a very small down payment ; good income; or what is this rent to own program; how does it work; school has to be......GARDEN CITY SCHOOL DISTRICT 11530; NO OTHER. PLEASE TELL ME WHAT TO DO.....

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Good afternoon Pjs1938,

As for Renting to Own, it 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.

Get a referral to a good, local, real estate attorney. Call the attorney, retain the attorney so you have her information handy when you make an offer. Having that information at time of offer helps you demonstrate to the Seller how serious you are, and they will consider your offer with more interest.

Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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1 vote Thank Flag Link Thu Apr 25, 2013
As for rent to own, such opportunities are rare as most owners prefer to sell outright; however keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously. As for available area properties, check out http://www.mlsli.com also consider working with an agent of your own....
2 votes Thank Flag Link Tue Apr 23, 2013
A great option despite wanting to rent to own, espcially if you have never lived in the are before is to just rent for one year and save more for your down payment. It will also give you a chance to learn the various neighborhoods.

Mortgage lending rules are becoming more stringent, and especially in Garden City where inventory is so low and there is high demand in your price range. You will be competiting on bids where other buyers either have all cash or 20% down. It is possible to buy with less of course, but getting the home you really want might take you a while longer.

Feel free to contact me at laurac@thedonnellygroup.com if you have further questions. I have a great referral to speak about mortgages with, and would be more than happy to help you find the right home, whether it be renting first or buying. I dont think its about necessarily finding a rent to own home, its about finding the right home for you and your family.

Laura Carroll
The Donnelly Group
Licensed Real Estate Agent
0 votes Thank Flag Link Fri Jan 10, 2014
Dear PJS1938,

As oft his evening, the lowest priced home (single family home) in Garden City school district as an asking price of $480,000 according to the local MLS data. Down payment amounts can vary, depending on the type of loan you are looking for, and the sellers willingness to accept your offer.

There are other options in the Garden City school district, including co-op apartments. I would be more than happy to discuss your options and situation, and to help you put together the best possible home buying strategy for you and your family.

Feel free to call me directly at 516-248-5007.

Dean Miller
Associate Broker
Miller Realty Group of Long Island
a division of Venue Real Estate Group

0 votes Thank Flag Link Sun May 19, 2013
Ryan put this very well. I totally agree with him. If you are looking in Garden City he would be a great resource for you.
0 votes Thank Flag Link Tue Apr 23, 2013
Typically Garden City has homes with the space you need starting in the $600's, you can find something in the $400's-$500's but there will always be a location influence (ie busy road, edge of town, etc). Most homeowners are willing to go with low down payment (FHA) buyers but it is vital you are pre-approved through a major lender. A 'rent to own' situation is quite rare and I have only done one in my 10 year career; this is where you rent a house and your monthly rental income goes towards the down payment of the house. It is a great scenario but rarely found or offered.

The first step everyone else is right about, speak to a reputable lender and get a pre-approval. With this in hand you will be able to know what you can afford taking into consideration mortgage payments, taxes and utilities. It is easy to afford a big mortgage but when you combine your total monthly expenses for home-ownership it will clarify at what level you are comfortable purchasing.

Ryan P. Donnelly, Broker at The Donnelly Group
Top Realtor Garden City 2012
Top Realtor Long Island 2011
Top Realtor in America Under 30 2009
0 votes Thank Flag Link Tue Apr 23, 2013
Rent to own is where a lessor agrees to collect a monthly rent from a lessee for a specified period of time. After that, the lessor transfers the title to the lessee. This can be a viable option for people that are unable to obtain a mortgage from a traditional lender.

Contact a mortgage advisor to get an idea of how much you qualify for. They might be able to recommend other possible options for your specific situation.
0 votes Thank Flag Link Tue Apr 23, 2013
Your first step should be to meet with a mortgage professional who will be able to tell you exactly how much house you qualify for. After that, and only after that, should you begin looking for a home.

Tom Moser
Keystone Realty USA

Long Island's Commission Rebate Realtor
0 votes Thank Flag Link Tue Apr 23, 2013
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