I am looking for a new home i would like to rent to own but have no idea where or who to turn to all the sites i have found want some sort of payment for home listings andget the hint of scams i just want a home some one please help!!!!!!!!!!!?
Check local listings in your newspaper or website for rent.lease to own homes. Most of this info is from "How Stuff Works" but I have put a link to some other sites that may help you get a grasp of it.
The process works similar to a car lease: Renters pay a certain amount each month to live in the house, and at the end of a set period — generally within three years — they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment on eventually buying the home.
Rent premiums are an amount slightly above the typical rent, with a portion of that money going toward a down payment.
As with any business contract, there are mutual risks and disadvantages involved for both parties. What if someone else wants to purchase the house for a higher price than originally negotiated? Who’s responsible for fixing the leaky roof in the middle of the night?
Some advantages and disadvantages for the buyer are:
* Buyers have time to build income and repair their credit history as they rent the house.
* Depending on the agreement, renters can walk away if they find something seriously wrong with the house. Although the renter will lose the option fee and all of their rent credit money, that amount will be much less than if the renter had bought the house outright and then tried to leave it later.
* Buyers still have to pay the upfront option fee. It’s usually a percentage of the agreed-upon selling price of the home and is often thousands of dollars. Although this money will go to the down payment should the renter decide to buy the house, it can still be difficult to accumulate that much money before renting.
* If the buyer is just one day late on a month’s rent payment, most agreements void the rent credit for that month. Think about the previous example, where the three-year renter received a $400 rent credit each month. If the renter were late just three times each year, at the end of the lease period the renter would have $3,600 less for the down payment. Rent-to-own leasers must pay on time, every time.
* All of those repairs that used to be somebody else’s problem in a rented apartment often become the responsibility of the new buyer, even during the rental period. Whether it means climbing on a ladder to unclog the gutters or having to pay for a new washing machine when the original washer breaks, the renter has to take care of it.
Have representation. Be sure you have a lawyer look at the papers before you sign anything. Although you may be able to pay the amounts that are agreed upon, you must be sure that you can also exercise the option in the agreed upon time. A banker should also be involved so he can give you a realistic idea of whether you will be able to get the mortgage in the time you have.
