Buying a house?
So I'm about to graduate highschool and parents want me out. I'm looking for some affordable housing in my area. Nobody taught me how to do this so I have questions. If a house is listed as say 120k, do you have to pay that up front or am I able to pay so much a month until I reach 120k? Rent to own, I think its called?
- Anonymous2 years ago
Wait, you do not even have a pot to piss in, a couple of weeks work history as a cart pusher at Wally World so how in the holy hell would you qualify for even a rent to own or even rent period? NO ONE IS EVEN going to rent to you at this stage.
READ that again YOU WILL NOT EVEN FIND SOMEONE THAT WILL RENT TO YOU!
You need to straighten out your act at home so you can stay thee another year and save every dime you make for a move in a year or two.
- SlumlordLv 72 years ago
I would avoid rent to own, it often ends in major problems. If you have good income and credit (and some savings) then you go to a bank or mortgage broker and see what kind of a loan you can qualify for. With this info in hand you call a real estate agent and they show you houses in your price point and you buy what you want and can afford, getting a loan for the bulk of the cost (which you pay back monthly).
If you don't have enough income, credit or savings; to buy now then you may need to rent (hopefully you have enough income savings and credit for that) and if you can't afford even to rent then you stay with mom and dad until you can afford it or you live on the street.
- StephenWeinsteinLv 72 years ago
The price is what the person selling it wants to get paid if everything is paid up front. With monthly payments, the total price is higher (so you would have to keep paying even after you reached $120k, until you had paid enough more).
Most seller will not do rent to own. Most sellers want to be paid up front. But you don't necessarily to need enough money to do that. If you qualify, you can get a bank to make a loan, called a "mortgage", where the bank pays the person selling the house and then you pay so much a month to the bank.
- sunshine_melLv 72 years ago
Very few people offer 'rent to own'.
If you want to buy, you're likely to need a mortgage.
So if a properly's 120k, you'll need a deposit of at least 12k, and earnings of 36k a year to allow you to borrow the remaining 108K (you can generally, depending on credit, borrow 3 x your annual income)
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- MaxiLv 72 years ago
As you are still in full time education it is unlikely you have a job and are earning, unlikely yuo have saving that yu can put down as a deposit which is normally minimum of 10% of the sale price, so 12k on a 120k property and unlikely you will qualify for a mortgage loan............ so you will be looking at renting and for that you will need a job earning x3 the amount of rent per month and will need at least a deposit and 1st months rent paid before you would get the keys if they accept you as a tenant
- AmyLv 72 years ago
It's called a mortgage. "Rent to own" means renting with the option to buy.
You need to pay at least 10%, probably more, up front.
Then you borrow the rest from a bank so that the seller gets the full amount up front. You pay back the bank with interest, so you end up paying a total around 200k for a 120k house. If you fail to make those payments then the bank is allowed to sell the house to get their money back.
No bank is going to trust a teenager with a $110k loan. You would first need to spend several years establishing a history of reliably paying back debts (e.g. a credit card). And you haven't mentioned whether you have a job offer - the bank will want proof that you have income to pay the loan.
Unless you can pay the full 120k up front, you'll have to rent for a while.
- babyboomer1001Lv 72 years ago
There is buying, renting and rent to own. I suggest you get your feet wet in a rental before you commit to any purchases. Renting will give you an idea where you want to be - you don't want to buy until you plan to stay a minimum of 10 years. Otherwise, the purchase will cost you big time. When you buy and you don't have well over the purchase amount to pay cash up front, then you do what most people do - get a loan. An about to graduate high school student would not be eligible for a house loan. You will have to have regular income sufficient for the purchase, sufficient job history, good credit and if you are making anything less than about $75k a year, you would not get a loan for a house.
- n2mamaLv 72 years ago
Generally speaking, most home sales require the entire amount be paid upfront. As most people can't do that on their own, they secure a mortgage where the lender pays the home seller the full purchase price and then the buyer pays the lender a set amount every month for a set amount of time, often 15 or 30 years. You will find it essentially impossible to secure a mortgage with little employment and credit history, and likely not much income (to secure a 120K mortgage you would need an annual income of at least 40k). Rent to own is out there, but are often scams.
You should be looking for roommate situations in apartments for rent.
- WesleyLv 42 years ago
Nearly everyone buys a house with a bank loan. You will need to establish some credit and work history to qualify for the loan, and save up at least 3.5% for a down payment. You don't want to do seller financing (rent to own) on your first house. It is too easy to be taken advantage of by the seller.
- SimplytheFACTSLv 72 years ago
what do you have against renting?
in the US, to get a mortgage for a house, you typically need 2 years in a profession. for a 120k, you will typically need AT LEAST 35-40K per year income. cash of at least $10,000 for down payment and closing costs and a good credit score.
no it is not rent to own for a standard mortgage.
most rent to own plans don't work and you end up with nothing