HomeRun Homes Rent to Own Homes Blog

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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts

January 31, 2012

Use A Mortgage, Rent It, Or Use Other Options

Hi Folks,
   Thanks for joining me here. I am so glad to write for you! OK, I promise not to corny.

   Over and over we hear that it is tough to get a mortgage. If you can't get a mortgage, what are some other options. What if you want a home, but don't want a mortgage?

   "It’s getting more and more difficult to qualify for a traditional mortgage", writes CA Hagy in an article titled, "Three Alternatives to a Traditional Mortgage". What are some reasons why you might be declined? Hagy names a few possible reasons, i.e. a foreclosure in your past, inability to prove a "decent cash flow", and self employment resulting in "irregular income?".

   If you fall into one of the categories mentioned above, you're not alone. Hady points out a few mortgage alternatives that might help you meet your goal(s).

   One option is to go the route of "Seller Financing", in which the "current homeowner offers to sell you the house", and you make payments to them but "they continue to hold the note until you have paid off the home". Hagy says that for a homeowner that cannot find buyers due to the tight lending situation. Seller Financing may be a "feasible option". The seller basically becomes the lender, and an agreement is drawn up with the full details of the transaction.

   "Borrowing from a Self-Directed IRA", writes Nagy, is "typically designed for investors who want to buy a home but don’t have the upfront cash to make it happen". As defined in the article by Nagy, "A self-directed IRA is somewhat like a Roth IRA or a traditional IRA", however, it's more flexible, For example, the IRA can invest in real estate, etc, but the "main catch", as Nagy calls it, that the IRS "does not allow you to use your own account or the account of a relative or business partner", thus, you "cannot use your own self-directed IRA to purchase a home. But you can use the money from another person’s self-directed IRA if they are not related to you". Confused? Nagy says that there are many investors "who will allow buyers to use money from their self-directed IRAs as an investment deal", and the investor would "own an interest in the property", or, the investor can simply "loan the money like a regular mortgage".

   The other option, "Leasing or Rent to Own", is something you might be quite familiar with, especially if you are a frequent visitor on our website. In a nutshell, the buyer can rent a home before actually purchasing it. The rent to own arrangement, which is also referred to as lease to buy, lease to own or a lease option, is one in which the buyer has an option to buy the home at a specified price within a specified period of time. This option would also benefit a seller unable to find qualified buyers, and would certainly benefit buyers who need time to save for a down payment and to "improve their credit score", says Hagy.

   Let's stay on the topic of Renting and Owning for a moment.

   "Sometimes it is better to rent than to own", writes Leah Ingram, in her article, "Rent or Own a Home?", who admits that "in today's real estate market it's not surprising if people are a bit gun shy about buying or owning a home." and she provides 3 tips to help you decide on renting vs buying.

   Ask your self; Do you have documented income, a good credit history, and a steady income? These are some important items to have in order to buy a home, in the first of three tips, courtesy of Jessica Edwards of Coldwell Banker Real Estate, within the article from Ingram. Edwards adds that if your income is unreliable, "getting tied down to a mortgage may not make the most sense financially".

   The next tip is to make a "timeline" of how long you will stay in the home; if it's just for a couple of years, you are "less likely to see a significant financial return on your investment", says Edwards, and says that if you stay under 2 years and sell it, "you may find yourself having to pay capital gains taxes".

   "Crunch the numbers", says Edwards, in her third tip. Add up the mortgage payments real estate taxes, insurance payments, maintenance costs, etc. and compare these costs of ownership vs. the cost of renting (monthly rent and average utilities).

   Ingram says that "buying doesn't always make sense and neither does renting", and suggests speaking with a "real estate expert, your tax person, and a financial professional" before deciding to rent versus buy a home.

What are your thoughts? We'd love to hear.

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Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #traditionalmortgage #foreclosure #SellerFinancing #homeowner #SelfDirectedIRA #IRS #Tax #RealEstate #RenttoOwn #leasetobuy #leasetoown #leaseoption #capitalgains

April 14, 2010

FHA, Rent to Own, Foreclosure...

Good Day Everyone,

Just wanted to say how amazed we are at all of the Scams taking place to beat people out of the $8,000 Tax Credit. We have seen and heard a lot of horror stories, so please, no matter how desperate you are to buy or sell, please be diligent in researching who you do business with.

Just a side note that we have launched a joint venture that offers help to people in foreclosure or who have gone through it, and cannot find a new home. It's a really bad position to be in, and there are way too many people there right now. They know that they have to stop foreclosure, but they also know that they need a new place. We felt that our Rent to Own website was not reaching more of these people in dire need, so we joint ventured to create www.StopForeclosureRenttoOwn.com (which is still being neatened up, appearance-wise), and have launched the site this week.

This is a two-fold benefit: It will help these people who are in trouble, and it will help you by bringing more traffic to your Ads.

Have a Great Day, and Happy Rent-to-Owning !

April 8, 2010

Details on the FHA Tax Credit for Home Buyers

Hi All,
There has been a lot of buzz about the FHA Tax Credit Program, and for those who are not too aware of it, we wanted to list a few key points of this excellent program here:

1. Up to an $8,000 Tax Credit is available for First-time home buyers (For a newly built home or a resold home). This is confined to sales occurring on or after January 1, 2009 and on or before April 30, 2010.
2. Up to an $6,500 Tax Credit is available for "move-up" (repeat home buyers or existing home owners), who purchase a Principal Residence (Not an investment property - but an Owner-Occupied Principal Property) between November 6, 2009 and on or before April 30, 2010.

This is a very basic breakdown, but there are certain specific income limits, so be sure to check the FHA Site (http://federalhousingtaxcredit.com).

As a side note, we have been busy working on our next venture, which will be announced soon, which will extend a hand to homeowners in trouble.
Further, we have been further updating our Twitter, Facebook, and MySpace Pages and adding numerous followers and friends...which means more traffic to your Ads !

Have a Great Week, and Happy "Rent to Owning" !!