What are your personal experiences/opinions on rent-to-own situations?
Title is pretty self explanatory, but what opinions or personal experiences have you had or have about rent-to-own situations for houses?
- Seed of MemoryLv 41 decade agoFavorite Answer
I went to seminar one time, after they get you in there the truth about how much money you really need kinda comes out, 0 down bad credit/no credit, ya right. Only if make at least $5000-8000 a month is it possible and if you make that much money you don't need their service and you most likely have good credit. My advice is to do your research on the company, I might have just run into the bad one. I do know that no matter how long your into it if you mess up once you lose the house, which is their ultimate goal. Anyone who says otherwise is involved. They even had phonies in the crowd that were 'NEW SATISFIED CLIENTS' They prey on the stupid.
- Patient PawsLv 61 decade ago
They make double to triple the actual price of the home- guaranteed.
When I was 12, my father got into a rent-to-own situation with a $150k home, paying $1,500 per month for 10 years-- sounds simple right?
WRONG. We *started* paying $1,500 per month for the first two years then the rent jacked up to $2,000 per month- but we still payed for ten years.
By the time I was 18 we'd already paid $90,000 on the house and had five years to go! Not to mention our landlord would get froggy some months and jack up the cost another $100-$500 whenever he felt like.
Now that we no longer live there the selling price of the home is $90k.
Know your landlord-- know your contract.
You're MUCH better off buying a home. Prices are great, loans are great, first time homebuyer credits are wonderful, APR is at a low fluctuating rate, and its absolutely perfect.
My husband and I are 20 and bought our first home for $65,000. Our rate is .4% and our monthly payment is $450 per month. Insurance included.
- wollschlagerLv 43 years ago
right this is the way it works: instead of outright procuring a assets, a skill customer attracts up a freelance with a supplier wherein the month-to-month apartment money, based on the residing house's value and in many circumstances above going expenditures, count huge sort in the direction of an eventual sale. All apartment money made pay down the theory if the renter makes a decision to workout the pre-paid selection--regularly a million% of the sale value--to purchase. The date at which the contract expires varies by making use of contract yet is often between 2 and 5 years. At that component, the renter can decide for to purchase the residing house on the unique indexed value minus the fairness he or she has geared up. If no longer, then the assets proprietor has the choice to evict them and save all money.