Quote:
Originally Posted by pseudoreality
I may do this in a couple of years when I upgrade if I can't sell my house the traditional route. The idea is to let someone 'buy' a house before they can afford it. They put down a smaller down payment, pay for maintenance, and the owner helps them build up a full down payment with a rent premium. There's risk for both parties.
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These are the exact conditions that lead to predatory lending. If they can't afford it, they shouldn't buy it.
That's why its really only an alternative when the buyer can't get traditional financing (or for some reason gets talked into it without researching traditional financing).