rental turned into "rent to own".(Original purchase price 289,000).
We're new to real estate.What's the down we're looking at?
2006-09-16 19:10:40 · 4 answers · asked by L.T. 4 in Business & Finance ➔ Renting & Real Estate
landlord says each month rent will be counted towards down payment whn the rental turns into rent to own.
2006-09-16 19:21:27 · update #1
If you multiply the entire, or portion of the monthly rent that will be credited towards the downpayment on your home by the agreed upon length of your lease per month, you then have a basis for a downpayment on your property. Depending on the type of loan you are able to aquire when you start the mortgage "hunt", what you have credited may be adequate in order to keep your monthly payments to a manageable level. If not, you may have to come up with some additional cash to subsidize the rental downpayment to make the numbers more comfortable for you.
2006-09-16 19:36:41 · answer #1 · answered by Linda S 2 · 0⤊ 0⤋
Is a part of your rents going towards your down payment? If this is your first home, you must be making nearly $70K annually. The payment that will require says that will be the needed income range to qualify for it. Rule is for conventional financing about 26% of your gross income for the monthly payment, 36% of gross income for all payments totaled including house, car, credit cards, child support, etc.
So, again, how much of the rents is applicable towards the down payment? That is an important question you need answered.
2006-09-17 02:17:48 · answer #2 · answered by tnbroker1 3 · 0⤊ 0⤋
A typical down payment is 10 percent of the purchase price..
2006-09-17 02:18:08 · answer #3 · answered by limgrn_maria 4 · 0⤊ 0⤋
what is the balance of the original purchase price that you now owe?, hows your credit? what the real market value of the home
2006-09-17 02:17:19 · answer #4 · answered by learningnewthings 4 · 0⤊ 0⤋