Renting to OWN.....

[Car Guy]

I'm looking for as much information as possible on renting to own a house or condo. Our house should be sold shortly and our only option for the time being is renting. I'd obviously prefer our monthly rent payment (or a portion) to be applied to something in the long term.....

Any input/advice is much appreciated.....:thumbsup



.

[T-Bag]

Input: Don't do it
Advice: You'll probably get fucked

[theavenger333]

for what a home loan is these days, whats the difference in a rent payment vs a mortgage? i'm assuming you'll be going to something similar in size and such as your house now, i don't know where or what, or your situation with credit. just a thought.

[wrath]

Right now you can take advantage of homeowners. We're renting our duplex for what the mortgage alone on the place costs. The landlord is paying the ~$600/month the taxes cost. So right now I'm renting a place for what the interest alone would be for a mortgage on a comparable single family home. I'm coming out ahead renting by a long shot.

Renting vs buying comes beneficial to buy when it costs about 15 times as much as renting. When I moved here two years ago it was about 23 times as much to buy as rent depending on where. I haven't checked in a while but I'm sure it's still not anywhere near that. I was willing to spend the coin when it got to 18 times.

Until shit settles, I'm not going to buy.

Renting to own is financial suicide, especially if the "owner" doesn't actually own the home outright. You're actually safer with land contract.

[SSLEVO]

for what a home loan is these days, whats the difference in a rent payment vs a mortgage? i'm assuming you'll be going to something similar in size and such as your house now, i don't know where or what, or your situation with credit. just a thought.

How about the down payment? LOL I'm paying 1100 a month in rent, which would be enough for a 150k+ house, just don't have the damn downpayment. With all the crap loans before you NEED 15-20% down these days.

[Car Guy]

for what a home loan is these days, whats the difference in a rent payment vs a mortgage? i'm assuming you'll be going to something similar in size and such as your house now, i don't know where or what, or your situation with credit. just a thought.

We have no down payment and our credit rating is not high enough for a home loan.....



Renting to own is financial suicide, especially if the "owner" doesn't actually own the home outright. You're actually safer with land contract.

What is the home is paid off...???

[tommyt5078]

How about the down payment? LOL I'm paying 1100 a month in rent, which would be enough for a 150k+ house, just don't have the damn downpayment. With all the crap loans before you NEED 15-20% down these days.



SS you hit some good points as you pay about the same as I do for my house...............If you find the right house to buy you shouldn't have much of a difference in the amount your paying in rent. You should be able to find a nice home for 750 a month............As SS also said, the down payment could be a problem.

[Yooformula]

How about the down payment? LOL I'm paying 1100 a month in rent, which would be enough for a 150k+ house, just don't have the damn downpayment. With all the crap loans before you NEED 15-20% down these days.

no you dont. FHA loans allow you no money down plus any HUD loans or first time buyers, there are alot of programs to help out with the downpayment.

[Rocket Power]

You should be able to find a nice home for 750 a month........
Where? My taxes are over $300/month

[05caddyext]

You don't need a down payment to purchase a home. Rural housing loans are available that require 0 down. Also renting in the long run is always a loss because at the end, like when you retire end, you have nothing to show for all those years. Your home should ultimately be one of your biggest, if not your biggest assets. If you rent your entire life, how do you plan on funding your retirement? Im assuming you haven't even thought about that, but you should.

[SSLEVO]

no you dont. FHA loans allow you no money down plus any HUD loans or first time buyers, there are alot of programs to help out with the downpayment.

Hmm,
I haven't looked into it much yet. A coworker(first time buyer) just bought a house this fall and his lender said they wouldn't look at you unless you had 10% down. Not sure what all of the details were though.

My lease in this condo is through September next year so i wouldn't be doing anything until then. I'll be getting married in may so that will mix up things, along with wanting to relocate to MN when this lease runs out. I think it's best we are renting until we get all of this out of the way, lol.

[Car Guy]

I tried finding rent or lease to own properties in the Milwaukee area and didn't find much, oh well.....

[jbiscuit]

harder to get an FHA these days but Yoo is right. FHA if you can get preapproved. As usual, Wrath is dogging the housing market when I will argue against him here that RIGHT NOW is a great time to buy if you can get a mortgage. Its a buyers market. Lots of nice homes for sale, mortgage rates are low and prices are lower than they were a year ago. Shoot there are houses on my street that have been for sale since summer and the homeowners have reduced their asking prices several time making even the ASKING PRICE a great deal. If anything, I would try and buy now to take advantage of sub-5% 30-year fixed mortgages! If you can get in on a FHA loan, you will be set. The FHA program will also require a good credit score and an evaluation of the home you intend to purchase which in essence is making sure you aren't buying a lemon.

I would try hard to buy again versus renting....renting is renting. Even if your home value isn't sky rocketing the first year you are the owner who cares. Buy because then its yours, not somebody else's. Learn how to fix things around the house, make some improvements to the yard and interior and be in a great position in 5-6 years when the market rebounds and you are ready to sell and move on.

[pOrk]

0% down is a thing of the past Jason, its damn near impossible to do anything with less then 3% right now. I struggled to get my loan, and my credit score is 760 AND I had 20% down.

750 a month for a nice house? Maybe, but not easy. I stole my house, and I pay 810 a month. I also put a TON of work into the house before I could move in.

[SSLEVO]

0% down is a thing of the past Jason, its damn near impossible to do anything with less then 3% right now. I struggled to get my loan, and my credit score is 760 AND I had 20% down.

750 a month for a nice house? Maybe, but not easy. I stole my house, and I pay 810 a month. I also put a TON of work into the house before I could move in.

From what i've seen and heard lately this seems to be the case. I don't think $750 a month will get you much, even before you pay taxes.

[Prince Valiant]

Right now you can take advantage of homeowners. We're renting our duplex for what the mortgage alone on the place costs. The landlord is paying the ~$600/month the taxes cost. So right now I'm renting a place for what the interest alone would be for a mortgage on a comparable single family home. I'm coming out ahead renting by a long shot.

Renting vs buying comes beneficial to buy when it costs about 15 times as much as renting. When I moved here two years ago it was about 23 times as much to buy as rent depending on where. I haven't checked in a while but I'm sure it's still not anywhere near that. I was willing to spend the coin when it got to 18 times.
Wrathonomics strikes again :rolf

[Crawlin]

How about the down payment? LOL I'm paying 1100 a month in rent, which would be enough for a 150k+ house, just don't have the damn downpayment. With all the crap loans before you NEED 15-20% down these days.


Sure, but then figure in property tax(and I'm talking in a nice neighborhood, i want resale value in my house, not just positive equity in a shitty side of town)

Then figure in your insurance, then your water and electric bill, etc...

For $1100/month I think people should be looking at the $110k range, haha