From: gigantor@yahoo.com (Hank Hayes)
Newsgroups: misc.consumers.house
Subject: Re: Rent/Mortgage payments as Down Payment?
Date: 1 Apr 2004 09:25:00 -0800

vze8f3tq@verizon.net (v) wrote in message news:<406ade45.966421@news.verizon.net>...
> On 29 Mar 2004 22:47:22 -0800, someone wrote:
> 
> 
> >Can rent payments directly to the current owner's mortgage company be
> >used as a down payment on the purchase of a house?
> >
> HUH???
> 
> As the other respondent pointed out, you have a serious misconception
> as to what a "down payment" is.
> 
> The Seller wants the existing loan of $100k covered, plus $50k.  So
> they want $150k.  So can you borrow the entire $150k?  What's the
> value of the house (and your credit rating)?  Wouldn't matter if you
> never paid one red cent to live there previously.  Your "proving" the
> rent you paid is absolutely meaningless as to the value of the house.
> 
> All that matters is your credit rating, and the market value of the
> house as determined by the lender's appraiser.  If the house was worth
> $187.5k or more, then $150k loan would be an 80% conventional.  If the
> house was worth $166.7k or more, it could be done under various
> methods of financing 90%, etc.  (If your credit is good enough.)
> 
> If the house is worth more than that $150k, they are giving you a nice
> break.  Good luck.
 
Thank you.  The house is worth 225,000, and my credit is excellent. 
They want to walk away with 50k after paying off their mortgage. 
Total price for the house would be 188,000, with finance amount being
150,000.  I don't have 20% in cash (38,000) but I did pay that much in
rent for the past six years.