Did you know that when you rent to own your new home it gives you the option to rent the property for a specific period of time, and then purchase it at the end of the rental period? Rent to own is a great method of buying a new home for people that cannot qualify for a traditional mortgage due to a lack of credit, and or a lack of a large enough down payment. In essence, the rental period provides the buyer with plenty of opportunity to improve their financial situation before purchasing the property.
The rental period can run anywhere from a few months to ten (10) years, depending on the terms that are agreed upon by both the rent to own buyer and the property owner. The following information will provide you with the top three (3) reasons to rent to own your new home.
You Want To Own A Home But Have Bad Credit Scores
If you want to buy a home of your own, but have bad or low credit scores, you will not be able to qualify for a mortgage to purchase a property. However, with a rent to own property you do not need good credit or high credit scores to get the process started. The bottom line is that you can move in right away by renting the property for a specific period of time before purchasing it. That means you can work on fixing your credit or hire a professional credit repair agency to help you fix your credit during the rental phase. By the time the lease period is over, you may very well qualify for a mortgage to purchase your home.
You May Be Getting A Great Deal On The Purchase Price
Under a rent to own, or lease option contract, the purchase price of the property is determined between you and the seller right from the start of the process. That gives the property a great opportunity to increase in value during the rental period. Real estate has been steadily increasing in value over the past ten (10) plus years, and that trend should continue well into the future. The bottom line is that you will probably be buying the property for a lot less money than it is worth at the time of your purchase. If the property gains $10,000 or $15,000 in value during your rental period, you gain $10,000 or $15,000 in equity when you buy it.
You Get To Test Drive Being A Homeowner
Under a rent to own contract, you have some of the responsibilities of being a homeowner during the rental phase. For example, you may be responsible for mowing the lawn during the summer and spring, and plowing the driveway during the winter months. In essence, the rental phase of a rent to own purchase allows you to experience what it is like to be a homeowner before you actually need to make the commitment.
Your Home Solutions Group has been involved in real estate and real estate investing for the past thirty (30) years with an emphasis on Rent To Own/Lease Option transactions for the past eleven (11) years. Although owning a home of your own may be the American dream, buying a home can be a complicated process for many reasons. That is why we take great pride in providing you with a unique solution that puts far more people on the path towards homeownership. Contact us to learn more today!