HOW DO I FIND RENTING W/OPTION TO BUY?

Asked by Mr&Mrs James A Allen Sr, Durham, NC Mon Apr 30, 2012

MY HUSBAND AND I CURRENTLY HAVE SECTION-8 HOUSING. AND WE'RE LOOKING TO RENT W/OPTION TO BUY. WE'RE LOOKING FOR 4 BEDROOMS AND AT LEAST TWO BATHS. TWO AND A HALF WOULD BE GREAT.

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Beatrice Karbowski’s answer
Beatrice Kar…, , Staten Island, NY
Thu May 3, 2012
Mr & Mrs Allen Sr

the agent or landlord would advertise rent with option to buy, Ifyou really like the apartments you are checking out
you could ask the agent or landlord if they are willing to rent with that option I suggest you contact an
attorney for the details on option to buy

good luck

Beatrice Karbowski
1 vote
, ,
Wed Apr 24, 2013
Good evening Mr & Mrs James,

Rent To Own 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.

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
NMLS#3528

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0 votes
Rita Colon-B…, Agent, staten island, NY
Tue May 1, 2012
Hello Mrs. Allen,
A rent with option to buy, is not very common on the island, though you may find a seller that would consider it. Be aware that everything, including price is negotiated prior to moving in and an "option consideration", that is not a security deposit, is also required. The option consideration is usually a percentage of the agreed purchase price and non-refundable if you do not exercise your option to purchase within the set period, usually a year, at which time you would purchase or move. If you purchase, the option consideration goes towards your down payment, in addition, to any portion of the rent that was agreed.

Make sure you consult an attorney before signing any agreement.

If you would like, we can set up a consultation to go over the requirements, look at alternatives and plan for a future purchase. I can be reached at 917 533 6234.
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