Does anyonr know how renting to own a home works? and if so is it a good Idea?
2007-03-22 02:45:09 · 5 answers · asked by Its Blu 1 in Business & Finance ➔ Renting & Real Estate
Land contract. YOu enter into a contract drawn up by an atty that states that a part of your monthy payment is going to be applied to the purchace price that you fix for the property. After a set number of payments, you usually agree to arrange to finance by mortgage; sometimes you pay the entire amount that way. The contract can be flexible about what you want to do as long as you are specific about the amounts paid, interest if any, when the deed will be recorded and what will happen if either party wants to back out or dies.
Good luck.
2007-03-22 02:49:37 · answer #1 · answered by wizjp 7 · 0⤊ 0⤋
2
2016-09-10 00:49:16 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Where I live it works like this:
It is 2 seperate contracts. It a Lease Contract and an Option Contract. You agree to lease the home for an agreed upon amount of time, and at the end of this time period, you have the option to purchase at a previously agreed upon price. Some times they may even forward some of the rent paid and/or deposit towards the purchase. If you choose not to excersize your option to purchase at the end, then you will lose whatever earnest money you paid to secure the option contract.
I think it is a great idea for people who are trying to improve their credit so they can apply for a good mortgage, and for people who don't know if they are going to be in the same area a year from now. Just make sure you thoroughly look over the contracts.
2007-03-22 03:40:09 · answer #3 · answered by ☼Pleasant☼ 5 · 0⤊ 0⤋
yes you can do it just go find out hows it being done okay all my best on house hunting good luck
2007-03-22 05:48:06 · answer #4 · answered by pattibcacl 6 · 0⤊ 0⤋
Only by using Islamic Banking this can be done.
2007-03-22 02:54:14 · answer #5 · answered by Booooo 2 · 0⤊ 1⤋