What does a Rent to Own mean? This lease typically means you will be renting or leasing a property for a period of time with one addition-you can opt to buy the home or property you are renting.
Many owners and real estate investors have started offering rent to purchase opportunities and in the past year, there has been a considerably increase in this area.
You can see more signs in front of either homes that state that you could "lease to buy" or "rent to own" the home.
Now, you might be wondering if this is something that will work for you.
A rent to own may have many structure options, most contain these types of items: 1.
In this kind of rental agreement, you would be paying the rent just like any normal rent.
All the standard items are applicable, such as fees for late payments and failure to pay could lead to an eviction.
2.
Option price is the purchase price of the property.
This will be stated in the lease agreement between you and the owner of the property.
3.
In this type, you will have an option payment.
This is also known as the down payment, an upfront fee to the owner or the caretaker of the property.
This payment is credited to the purchase price of the property and in most cases, non-refundable in case you do not exercise your option to buy the home.
4.
A rent credit is typically applied towards the purchase price, only if you exercise your option to buy the home.
The Rent Credits are not actual money in a bank account, but it is a fund essential in lessening the purchase price or to be used for the costs of closing.
The Benefits of a Rent to Own for You: 1.
Choosing a rent to own home is a lot easier than other types of owner financing.
Rent to buy tends to be more available since they are easier to structure and understand.
Most rent to own terms is at least 12 months, 24 months and some as long as 48 months.
This should be enough time for you to have whatever credit issues resolved.
2.
In a lease to own, you are not obliged to purchase the property, bear in mind that this is an option should you wish to buy the home you are renting.
In most situations, this will be beneficial for you.
Instead of throwing rent out the window, it is preferable to get rental credits and a locked in purchase price.
This is also a good investment and you and your family is assured of owning the property instead of looking for somewhere else to live when the term expires.
3.
The average monthly payment and down payment is lower compared to other forms of owner financing.
Additionally, you do not quite have the responsibilities of ownership until you actually bring your own financing.
In the real estate market today, rent to own has become very common.
If you are looking for a new home, this deal could give you many benefits.
Think of it this way, a rent to own will surely work for you since whenever you decide to purchase the property, you are already settled in it and you do not have to spend more money on moving costs.
You can consider the money spent on the rent as your monthly investment to a home that would soon be yours and the deed will be in your name.
Many owners and real estate investors have started offering rent to purchase opportunities and in the past year, there has been a considerably increase in this area.
You can see more signs in front of either homes that state that you could "lease to buy" or "rent to own" the home.
Now, you might be wondering if this is something that will work for you.
A rent to own may have many structure options, most contain these types of items: 1.
In this kind of rental agreement, you would be paying the rent just like any normal rent.
All the standard items are applicable, such as fees for late payments and failure to pay could lead to an eviction.
2.
Option price is the purchase price of the property.
This will be stated in the lease agreement between you and the owner of the property.
3.
In this type, you will have an option payment.
This is also known as the down payment, an upfront fee to the owner or the caretaker of the property.
This payment is credited to the purchase price of the property and in most cases, non-refundable in case you do not exercise your option to buy the home.
4.
A rent credit is typically applied towards the purchase price, only if you exercise your option to buy the home.
The Rent Credits are not actual money in a bank account, but it is a fund essential in lessening the purchase price or to be used for the costs of closing.
The Benefits of a Rent to Own for You: 1.
Choosing a rent to own home is a lot easier than other types of owner financing.
Rent to buy tends to be more available since they are easier to structure and understand.
Most rent to own terms is at least 12 months, 24 months and some as long as 48 months.
This should be enough time for you to have whatever credit issues resolved.
2.
In a lease to own, you are not obliged to purchase the property, bear in mind that this is an option should you wish to buy the home you are renting.
In most situations, this will be beneficial for you.
Instead of throwing rent out the window, it is preferable to get rental credits and a locked in purchase price.
This is also a good investment and you and your family is assured of owning the property instead of looking for somewhere else to live when the term expires.
3.
The average monthly payment and down payment is lower compared to other forms of owner financing.
Additionally, you do not quite have the responsibilities of ownership until you actually bring your own financing.
In the real estate market today, rent to own has become very common.
If you are looking for a new home, this deal could give you many benefits.
Think of it this way, a rent to own will surely work for you since whenever you decide to purchase the property, you are already settled in it and you do not have to spend more money on moving costs.
You can consider the money spent on the rent as your monthly investment to a home that would soon be yours and the deed will be in your name.