Best Mortgage For A Rent To Own

I recently finshing rehabbing a property. My strategy is to re-finance at 90% LTV and hold the property for a few years.

I have a couple that would like to do a rent to own. My question is are there certain types of mortgages that are better than others since ideally I will not have the property for more than 5 years?

Comments(2)

  • NewKidinTown210th December, 2004

    ARMs are probably better than 30-year fixed for your situation. Look at 3/1 and 5/1 ARM products and figure out which is best for your cash flow over your expected holding period.

  • Devlon10th December, 2004

    My suggestion is an ARM with an interest only payment. That way your payment can be low. You can get like a 5 Year Interest Only ARM. Interest Only payments will maximize your cash flow. I can definitely help you with this if you would like.

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