Natalie, Home Buyer in 46222

Is it possible to rent a house until you can come up with a down payment before buying it?

Asked by Natalie, 46222 Thu Mar 5, 2009

We found a house on here that we really like its just we wont have the down payment until the end of July just didn't know if it was unheard of to rent the house until you have the down payment then do all the purchasing. We haven't asked to see it because we don't have the down payment.

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This question is about this property: http://www.trulia.com/property/1068607602-3782-Riverwood-Dr-…

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5
Marita Topmi…, Agent, Indianapolis, IN
Thu Mar 5, 2009
Hi Natalie,

I'm sorry, but this home is not the one for you. The home is in short sale now
and there are very few situations in which a bank would allow someone to come
in and rent to buy. The bank for this particular home will not allow a rent to own.
There are several buyers interested right now in this home.

If you'd like to look at others, feel free to give me a call.

Thanks,

Marita Topmiller
Assoc Broker/ Realtor
Century 21 Realty Group
513-4652
marita@maritatopmiller.com
0 votes
Ken Fisher, , 46037
Thu Mar 5, 2009
It is quite simple to view the property, get yourself pre-approved, make an offer if you like it .., make the offer subject to your being able to rent the property prior to closing. It is about as easy as falling off a rock ... I have handled these types of transactions many times in the past 36 years.
Ken Fisher
317-845-9511
0 votes
Eric Karrfalt, Agent, Noblesville, IN
Thu Mar 5, 2009
Miskey.....Taxes will be 1.5% of your assessed value this year, not 1.4%, and 1% of your assessed value next year. After that, our state government might decide to change it. In a short sale the bank needs to take less than owed. They might not agree and take the home all the way to forclosure, gain marketable title, and then just sell it outright. It's concievable that this home might still be on the market in July if a short sale is not worked out.
0 votes
Eric Karrfalt, Agent, Noblesville, IN
Thu Mar 5, 2009
Yes that may be possible. I am working with a client right now with the same issue. He also becomes a first time homebuyer again in July, having not owned a home for three years. This qualifies him for the $8,000 stimulis money. If this home is bank owned, 99% chance they will not rent. If the owner has the capability to let you move in and rent till you have downpayment funds, you could do a short term rent to own, assuming the seller agrees with this. They may need the proceeds on this to buy another...........Update here.....I just pulled this up on our listing system and it's subject to a short sale. It is probably not in the position to be rented at this time. On an FHA loan, you only need 3.5% of your funds, in the bank, to purchase which is $2,625. Closing costs can be worked into the deal so you don't pay out of pocket. At closing you will get a credit for pro-rated taxes. The listing indicates $1,700 semi annual. If correct you would get a credit for $3,400 +/-. You would walk away with money...... Plus if this is a first home, you will also qualify for the $8,000 tax credit. $3400 annual taxes seem real high so these numbers look off. I would need to verify they are correct, but if true, you could get in this home by financing all your closing costs, put $2,625 of your own money into it, and recieve your $8,000 credit and the difference of the pro-rated taxes and your downpayment. So if you can scratch up your 3.5% downpayment, which might be available in a gift form by FHA guidelines, you could be looking at an $800 payment range and getting $8,000 to boot. Payment will be much lower if taxes are incorrect. Ther should be about 1.4% of your assessed value. Tax assessor says home is $112,200. Sounds like a good situation if you like the home. Call me at 317-590-8783 and we can talk more.
Eric Karrfalt. F.C. Tucker Co.
0 votes
Colleen Gord…, Agent, Greenwood, IN
Thu Mar 5, 2009
It is possible if the seller if willing to go with those terms. It would be similiar to a "rent to own situtation". There are a lot of negotiable sellers out there right now. It might just work!!!
0 votes
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