We all dream of becoming home owners in the future. But, what if after finding that perfect house we learn that our credit and income is not up to par. It would seem that all is lost─ not so. That’s when renting-to-own come in to save the day.
What does rent-to-own means? It involves leasing out a home to tenants with a legal agreement allowing the tenants the exclusive right to buy the home within a certain time period.
Although a previous owner home was foreclosed on in the past, there are still steps that he or she can take to become proud owners again.
1. A landowner looks for creditable tenants to lease their home to. Next, the seller and buyers, signs an option agreement, which tells how many months the
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3. The option fee the buyer is charged depends on the cost of the house. This fee is nonrefundable, but will be added toward the buyer’s down payment once the mortgage takes effect, which is a plus for the buyer.
With a rent-to-own deal, everyone comes out as a winner. The buyer has the time they need to fix their credit from a previous foreclosure, pay the low cost of renting. Not only is the seller coming out on top, but past homeowners do not have to deal with the stigma of never owning a home again. Thanks to the decline in real estate, most people that are looking to sell their home are turning to rent-to-home options to as an avenue.
Although there is a slight increase when it comes to people buying homes, it still has a ways to go.
Who wants to rent a home that will never be theirs? Month after month they are losing money by paying rent. When they decide to move out of it, they have nothing to show for it. Leasing a home is even worse. After signing a contract to lease a home or an apartment for six months or a year, you’re taking a chance that they rent may increase and it doesn’t benefit you in the long