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Are rent to own homes a scam and do they use the same loan as regular purchases?

by ilikered459 from China Grove, North Carolina. Jun 8th 2021 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

The concept of rent to own is that the agreement usually allows a tenant to rent a home for a period of time and the landlord / owner agrees to allow you to purchase the home at the end of a specific time period and the seller credits you back a portion of your rent to use towards the funds you need to purchase the home. Unfortunately, all too often, The amount of credit the seller offers is limited and the rent paid during the rental period is inflated. When it comes time to actually close on the purchase, the tenant has other issues that prevent them from qualifying for a loan to complete the purchase. For this reason, I do not recommend using this as a way to buy a home.Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ 480-889-9000

Jun 10th 2021
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