Renting to own

for-rent-4These are becoming increasingly popular as a way for purchasers to get into the housing market before they have a down payment ready. The danger, however, is getting financing down the road when it’s time to close the actual purchase.

Many lenders are very hesitant to loan money to purchase these properties, so it is crucial that you talk to a mortgage broker at the beginning of the deal, and keep in touch with the broker as the years pass. It would be heartbreaking to get to the end of the term, have paid all your money, and not be able to get a mortgage.

Save

Comments

  1. It is, indeed, quite difficult to finance rent-to-own properties. Great advice, Cesia. There are ways to word RTO contracts to make it easier to obtain the financing, so it’s a great idea to chat with a mortgage broker BEFORE you even sign that RTO agreement! 🙂