What mortgage programs will do rent to owns?

Rent to Own is not a loan but an agreement between you and the landlord in this type of arrangement you pay your rent + the amount over the rent can go into an escrow account or held by the landlord to credit back to you when to close on the loan. If conventional is the loan you want you can do a combination loan a 1st and 2nd mortgage. to avoid MI or you can get a LPMI (lender paid Mortgage Insurance).800-485-1387 Ext. 116 ballen@bankofengland1.com

There are definitely ways to avoid PMI but if you decide to save money and wait, rates and values will be going up as well and you will be getting behind. The good news is that besides ways to avoid PMI, it can be dropped on a conventional mortgage after 2-3 years if values rise and so getting in on it now may be best. I am in northern CA and happy to help (866) 385-1650

rent to own is not a good way to avoid mortgage insurance. Only the portion of the rent you pay which is MORE than the "fair market rent" for the home you are living in can be applied toward the downpayment - not the full payment. Talk to an experienced and creative mortgage lender and they will help you work out your options. Waiting to have enough funds to avoid mortgage insurance may mean interest rates are significantly higher which may mean no real savings on your payment. If you qualify today and are ready to buy, don't let PMI be the obstacle.

There are no conforming lending programs out there with rent to own options. For private sellers offering a "Rent to Own", I would be cautious. The market is really good right now, so there's no need for someone to offer seller financing when they can easily sell their home, so typically, in a good market, anyone offering a rent or lease to own will likely have either a property issue where conforming financing wont allow it to be financed or the seller is selling the home for much more than the market value, but in either scenario, i would avoid these types of properties. Also, there's no need to try to avoid paying mortgage insurance for two reasons.. one is that MI is not that expensive, and two, if it takes you a year to save up enough money to put 20% down and avoid MI, then if property values increase, and mortgage rates go up, you most likely will end up paying more then if you just purchased now and paid MI. With conventional financing, they only require 5% down, and the MI is very inexpensive.. especially if you have good credit scores. Plus with Conventional MI programs, once you have paid for 2 years, and you obtain 20% or more equity, then you can request it be removed, and you will not need to refinance to accomplish this.. Right now, with a 720 credit score, 5% down, your MI would be less than $52 per month for every $100K financed.. with 10% down, $37 per month, and with 15% down, $23 per month.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Hi - I'm a California loan agent, and my company, HomeStreet Bank, offers a lender paid MI loan. How it works is that you take a rate that's about 3/8th higher, and the lender pays off the MI. So you might end up with a monthly payment that's about $40-60 higher per month (due to the 3/8th higher rate), but in exchange, you don't pay the MI of about $120 or so a month. So you save a lot - with exact numbers of course all based on your purchase price and loan amount (and credit score.) Call me and we can discuss your options. Interest rates are low this week, and if you wait till next year to buy you risk having higher rates. Marty Stern 707-364-4115.