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How to rent a house?

How to buy or rent a house with bad credit?

  • Our current situation is that we cannot afford our mortgage any longer. We have been in this situation for about 4 years. It has finally come down to the mortgage company is willing to take the deed in lieu of foreclosure. We bit off more than we can chew & we are paying the price. I've made my peace with that. We looked at another house to move into that is for sale by owner. We told them our situation & that we can only rent or buy on contract. They are trying to sell the house for about $180,000. If they are open to a contract, is it appropriate to offer $500 per month for 30 years? What are my avenues here.

  • Answer:

    The easy answer is no, it is not appropriate to offer $500 a month for 30 years - that just covers the cost of the house with no interest...if I was the owner, I would reject that outright - you are basically using my money to buy my house from me. The proper payment on that house would be closer to $1,000 a month for 30 years, which is a below market interest rate of 4.75% - you might get it a little lower if he is willing to take a slightly lower interest rate, but if he is smart, your payment would be closer to $1100 or higher to make up for the risk your credit history presents.

Poskeman at Yahoo! Answers Visit the source

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You are not even coming close to the interest with $500 per month. Interest alone at 6% is $950 and with your credit history a higher rate is justified.

wife drama and now this?,,,,500 a month barely pays for a nice car.

You may need to put more cash down then normal.

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