Posted by Bill K. (AZ) on March 16, 1999 at 18:01:13:
If the seller is crediting you with $100/mo for 24 months, he/she has, theoretically, received $2,400 at the end of 2 years. They are collecting it with the monthly rent. This effectively reduces the amount you will owe when you exercise your option by $2,400.
Absolutely! That $2,400 is your equity. If your purchase price is $100,000, you owe the seller about $97,600. If the home appraises for $100,000 or more, and you can get a 98% loan based on the contract price, then YOU’RE IN!
I hope this helps.
Bill K. (AZ)