Dear REIN members,
I am new to REIN and have a question on how to "do" a rent to own. I have a couple in Edmonton who are graduate students who are looking to buy a home but don`t show the income to qualify for a mortgage. They currently are living on a student loan and one of them has a part time paid position as a research assistant to her PhD. sponsor. My question is how do I set up a rent to own?
Do I charge them a premium on the rent of which the premium is considered a "down payment" towards their down payment? Does this continue until they`ve paid me the agreed upon down payment, say , $20,000?
At what point do they take over as owners and assume the mortgage payments?
They will graduate in a couple of years and should then be earning a good income so I`m confident of their earning potential going forward.
Can someone steer me to a detailed description on how RTO`s are structured? Is there somewhere where this info is downloaded?
What haven`t I asked that I should know?
Your help is much appreciated on this.
Ross
I am new to REIN and have a question on how to "do" a rent to own. I have a couple in Edmonton who are graduate students who are looking to buy a home but don`t show the income to qualify for a mortgage. They currently are living on a student loan and one of them has a part time paid position as a research assistant to her PhD. sponsor. My question is how do I set up a rent to own?
Do I charge them a premium on the rent of which the premium is considered a "down payment" towards their down payment? Does this continue until they`ve paid me the agreed upon down payment, say , $20,000?
At what point do they take over as owners and assume the mortgage payments?
They will graduate in a couple of years and should then be earning a good income so I`m confident of their earning potential going forward.
Can someone steer me to a detailed description on how RTO`s are structured? Is there somewhere where this info is downloaded?
What haven`t I asked that I should know?
Your help is much appreciated on this.
Ross