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Rent To Own
alexajj23
post Jun 28 2012, 01:01 PM
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I'm always seeing ads for rent to own places.. has anyone actually done this and is it real.. They hype it up as while your paying rent your on your way to own that place without any downpayment or good credit, is this true?
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VivekThakur
post Aug 1 2013, 04:57 AM
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QUOTE (alexajj23 @ Jun 28 2012, 02:01 PM) *
I'm always seeing ads for rent to own places.. has anyone actually done this and is it real.. They hype it up as while your paying rent your on your way to own that place without any downpayment or good credit, is this true?


There is always down payment or good credit,while you are going to own a place on rent, Or it is depend on owner choices.


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ShadowWolf
post Sep 18 2013, 04:42 AM
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Investigate your home buying options before locking yourself into a rental program that might actually cost more than home ownership, considering interest rates.


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simonsayz
post Sep 18 2013, 10:48 AM
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Rent-to-Own is a great way for people with low-credits to no-credit to own a home. Most of the rent-to-own are own by investors.

It is 100% legit. Interest-rate will be higher than the traditional mortgage company because the investor is acting like the mortgage company basically letting you pay monthly.

However, it's usually a 5 year term amortized into 30-years. So by the end of 5 years expect to have a balloon payment. This way you get a loan to cover that balloon payment.
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ShadowWolf
post Sep 24 2013, 08:19 PM
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QUOTE (simonsayz @ Sep 18 2013, 10:48 AM) *
Rent-to-Own is a great way for people with low-credits to no-credit to own a home. Most of the rent-to-own are own by investors.

It is 100% legit. Interest-rate will be higher than the traditional mortgage company because the investor is acting like the mortgage company basically letting you pay monthly.

However, it's usually a 5 year term amortized into 30-years. So by the end of 5 years expect to have a balloon payment. This way you get a loan to cover that balloon payment.

And, what is the interest rate like compared to a low interest home loan? Won't you end up paying more for renting to own than buying with mortgage?


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simonsayz
post Sep 25 2013, 06:20 AM
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QUOTE (ShadowWolf @ Sep 25 2013, 12:19 AM) *
And, what is the interest rate like compared to a low interest home loan? Won't you end up paying more for renting to own than buying with mortgage?


Rent-to-own is mainly for people who have low or bad credits and not qualify for a traditional mortgage.
The interest rate might be 2-4% higher than the low interest home, but remember this is just a temp "loan"
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ShadowWolf
post Oct 12 2013, 06:53 PM
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QUOTE (simonsayz @ Sep 25 2013, 07:20 AM) *
Rent-to-own is mainly for people who have low or bad credits and not qualify for a traditional mortgage.
The interest rate might be 2-4% higher than the low interest home, but remember this is just a temp "loan"

It makes sense there would be an option for bad credit risks. Also, when you think about it, the rent to own option is still much lower interest rate than a credit card (which is around 19% APR). So this might be a sensible option for those really wanting home ownership but not being able to qualify for a traditional loan.


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Kirstwyn
post Oct 22 2013, 03:11 PM
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A rent to own house or property can be a good stepping stone for anyone who is on their way to recovery from debt. This type of home ownership allows someone with bad credit to work toward re-establishing themselves with creditors and the ability to enjoy home ownership at the same time.
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ShadowWolf
post Nov 10 2013, 05:06 PM
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A rent to own house or property can be a good stepping stone for anyone who is on their way to recovery from debt. This type of home ownership allows someone with bad credit to work toward re-establishing themselves with creditors and the ability to enjoy home ownership at the same time.


Assuming the residence is in a good neighborhood, then a rent to own home can be a good choice. But you should remember that you are still renting and don't own the home outright yet and it could be many years or decades before you are close to full home ownership. I don't think you have the same rights with rent to own as you would with mortgaging a home for ownership. As in, if you stop renting the house, all your money is lost and you can't just resell the house to recoup your investment.


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Eloisa Lagare
post Jun 12 2017, 05:02 PM
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QUOTE (ShadowWolf @ Nov 10 2013, 06:06 PM) *
Assuming the residence is in a good neighborhood, then a rent to own home can be a good choice. But you should remember that you are still renting and don't own the home outright yet and it could be many years or decades before you are close to full home ownership. I don't think you have the same rights with rent to own as you would with mortgaging a home for ownership. As in, if you stop renting the house, all your money is lost and you can't just resell the house to recoup your investment.


So, if you are paying for your rent for almost 4 years already then you cannot assume the house you are actually gonna own in the future?

This post has been edited by Eloisa Lagare: Jun 12 2017, 05:03 PM
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