Does My Entire Rent Payment Go Toward Purchase?
I'm new at this and am admittedly ignorant when it comes to REI. I'm hoping to propose rent to own with my current landlord. My question is how much of my rent goes toward the total balance of the house? If, for instance, I make payments of $1000, does $1000/month go toward the balance due?
Also, is there any way to just make payments until the balance is paid off? For instance, if the house is worth $100,000, can I just make 100 $1000 payments?
Thanks in advance!!!
That would depend on the Contract and your Agreement with the Seller; however, rental credit is usually small relative to the full rent. Ultimately, whatever you and the Seller agree to. You have to figure in any outstanding loan balance(s) in the overall equation.
Quote:Also, is there any way to just make payments until the balance is paid off? For instance, if the house is worth $100,000, can I just make 100 $1000 payments?
What you've described sounds like an installment sale. While it is possible, I don't know how likely it is to actually happen.
Your next step is to read through several pages of topics in this forum, jot down any questions, keep reading until you either run out of topic messages, or answer all your questions. After going back 5 or 10 pages in this forum, pick another forum, like the Birddog/Beginner's forum and do the same there.
If you have questions then, use the search feature. If that doesn't help, try google. If that doesn't help, post another topic.
KimInAustin,
Sounds to me like you really want to try and buy this house.
Why not approach the Landlord, tell him your intentions/desires and discuss what's best for both of you. Discuss Owner Carry, Lease Option, etc. and try and come to a mutual agreement. Good Luck.
Dave
[addsig]
Been a lender for 13 years and have yet to see any credit given unless it is over and above "market rents". If market rents are $1000 and youve been paying $1200 a month for a year you could get $2400 credit according to lender. Keep track of everything! cancelled checks are imperative. Gives you a mtg pmt history as well.
The owner would really have to be desperate to get rid of the property to let 100% of your rent payment be applied to the sales price.
If you paid top dollar for the property, he might consider some credit to be applied.
Is it better for you to have a lower sales price and not have rent applied, or to pay appraised value and have some credit applied?
As another mentioned, it is best just to sit down with the owner and work something out. Once you do that, you can always come back to the board here and let us know what he said. We can tell you if it is reasonable or not.
Good Luck!
Namaste, you are talking about credit towards a down payment, right (not towards the price of the house)?