How much Option Consideration is required?
The amount of Option Consideration required to get into a Rent to Own opportunity varies from house to house. There are some general rules of thumb to keep in mind. • When you get a conventional mortgage you normally need to have a 20% down payment to purchase a property. • When you buy a home on a Contract for Deed, it is common to require a 10% down payment to begin the contract. • Rent to Own normally requires a 3% to 5% up front payment. This is significantly less money than the other purchase options. For example: Consider a $150,000.00 property. Conventional mortgage down payment:$30,000 Contract for Deed: $15,000 Rent to Own: $4,500 – $7,500 Note: Some Landlords use different methods to calculate their Option Consideration requirements.
Related Questions
- Will an adjacent land owner be given the option to purchase the property before consideration of any other private party, local government or state agency?
- Why is the "one-way" option from Wye Barricade to Canton Ave. on Route 4 South being taken out of consideration from the Traffic Safety Plan?
- Is the option consideration money non-refundable?
