Is there something like a rent-to-buy mortgage?
by Felixx on Saturday, June 19th, 2010 | 12 Comments
And if there is something like that, how does it work?
Is it worth it?
We are about to rent a house and we like it a lot.
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I'm a mortgage broker from Edmonton Albterta. Here we have rent-to-own companies. Usually they require a small deposit and a long term lease. In the lease they will clearly state how much of your rent has been set aside for your down payment. usually if you have had bad credit in the past, it can take a few years to repair. So this way by the time that the buyer can qualify for a mortgage, they have accumalated a down payment.
Yea there is, but you pay the rent for the deposit, and still have to get a mortgage, and you have to look for a house with a rent to buy option usually. They are owned by companies who deal in this. I looked into it years ago.
I believe some houses may have a rent-with-an-option-to-buy, but that is strictly up to the person selling the house.
Yes,it's called a land contract,has to be drawn up by a lawyer.
It's called land contract - you'll have to talk to the landlord about it - first, they've got to be willing to sell.
thats sorta what a mortgage is. you pay rent for a set amount of years and then its yours.
You can lease with an option to buy.
Sometimes, the landlord will let you accumulate part of your rent toward a purchase. This means that you get credit toward your downpayment from part of the rental fee you pay each month. This is a great benefit to you, so explore it with the owners.
Yes it is a contract you make with the current owner. The owner could agree to sell you the property after a certain period of time. You could pay extra on the rent and have it counted as the down payment. If the owner agrees to self finance it is called a land contract. You still need to execute a deed and have it filed so that you will be considered the new owner. Sometimes these are risky business deals. Please have a real estate lawyer help you with the paperwork.
It;s a pretty flexible agreement. Usually a part of your rental payments go toward an actual "payment" toward purchase.
When the payment is enough, or when you can arrange mortgage financing, you convert from rent to sale.
A VERY specific contract needs to be in place; have BOTH atty's look it over
no you muppet its called a buy to rent mortgage as you buy the property to rent it out rather than live in it. Some places give you a buy option tho normally you get no return if you are renting
housing associations like church housing and focus housing... (most housing associations) do a lease buy arrangement.. you buy 25% of teh property at a time...
talk to them
Just ask your landlord if he will sell the property to you and then go through the normal course of buying a property.