How does rentng to own a home work?

Question

do you pay taxes,insurance.etc. etc.?

Answer 1

it is called a land contract or contract for deed. The price is set--you pay as agreed the private lender the stated amount due in CHECK only (you will need a paper trail later) for a couple of years and then get bank financing for the pay off and the new lender does this as a refinance of the home. As to taxes and insurance that is per the NOTE you sign. Do not extend beyond 24 months on this as any thing the private lender may do could affect your rights in this agreement as law suites they may loose could attach hidden lien you may not become aware of till tooooooo late

I am a mortgage banker in TN & KY

Answer 2

Part of the negotiations are deciding who pays the tax, insurance, HOA.   Some buyers think it makes you look more serious.  Some buyers think it is a lot of money that the landlord had to pay anyway so they want the seller to pay.

You pay rent each month until some time in the future when you will buy it.  Until you buy it , you are a renter.  On the day you buy it, you become an owner. Very easy concept.