tips on lease to purchase...?

Question

anyone ever do this? what's the good things about a lease to purchase-

Answer 1

actually it can work out well for those who do not have much for a downpayment for thier own home. If you draw up a land contract some financing companies will basically view you as the owner and let you do a refinance to buy the house.

Also, It locks the price of the house in regardless if the house appreicates in value.

Not a bad way to go...I would look more into it...if you can't buy!

Answer 2

I would somewhat disagree w/ Mark P's answer. It's not such a bad thing IF you do your homework. Basically everything revolves around the contract that both you and the seller/landlord draw up. Techinally, anything above market rent that you pay will serve as a down pmt. The price of the house is pre-negotiated for a future date. You will need to evidence 12 mths cancelled checks at the time of purchase so keeping all documentation is key. But again, this can be very effetive for first time home buyers especially now that the guidelines to qualify for a home loan are more strict.

Answer 3

Oh my God, never rent to own, you will get screwed, its a way for landlord to rent their property in a slow market. Every Realtor association in every state has banned using their contracts for lease to purchase deals. I guess enough people havent been screwed out of the deal for it to be known well enough that its common knowledge by now...

The landlord will be more than happy to find a reason to get rid of you, keep your downpayment, pocket your money, then sell it for full price or it again.

Answer 4

How to find property that is lease to purchase.

Answer 5

Its better than straight out renting