Why Rent To Own

Like so many out there, it’s very difficult to qualify for a mortgage. Maybe, you have a not so perfect credit, or perhaps, you’ve been self-employed for quite some time. Whatever the case may be, not being able to qualify for a mortgage does not mean that owning a home is impossible for you.

If you have done your homework, maybe you have already considered rent to own as an alternative to buying a home outright, or through a loan.

If you’re really serious about buying a home, this is a more than good option. Even if you do qualify, it would take so long to be processed, and then you probably lost all hope for that house, or it may have been released to someone else.

Rent to own homes offer you more than a single benefit. First, it offers an excellent way to build equity in the home before you even owning it. When you choose a lease purchase rent to own house option, you will provide them with an upfront deposit of around .25% to 10% of the total house price. This is not refundable, but, it goes toward your ownership.

While your monthly rent is higher than how much you would pay on a normal rent scheme, it is likely the same amount if you were to obtain a zero down mortgage. By the time that you get to your own loan, you will no longer feel any sudden payment shock.

Even though you are only renting the house, the maintenance is already on the shoulder of a buyer. You are responsible for the regular house maintenance like broken windows, drainage, repainting and lawn work. Overall house repairs is the owner’s responsibility until your purchase is final.

What’s great about a rent to own program is that the future purchase price remains fixed on the time of your deposit regardless of value appreciation. This alone already saves you a lot. Aside from this, you get to prepare yourself for the responsibilities of ownership. On the first day of your rent, you already consider the house as yours, and you get more appreciation by gaining more equity until you finally get that dream home.

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31 Responses to “Why Rent To Own”

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  29. Finding the Best Rent to Buy Home | Real Estate Says:

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  31. Tips on Buying a Rent to Buy Home | Real Estate Says:

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