How to Rent to Own Homes
Have you thought about home ownership but not quite ready to take the plunge in getting a mortgage? If so, then rent to own homes may be an option for you. Rent to own homes is a way for people to try out home ownership and they have the option of purchasing the house after some time.
The way rent to own homes works is the seller will act like a lender to the buyer. The seller and the buyer agree on a final purchase price of the home. The buyer makes a down payment on the house, and makes monthly rent payments. A portion of the rental payments will go towards reducing the final purchase price. At the end of some time, the buyer should get a loan and purchase the house.
Rent to own homes is a great way to purchase homes immediately if you do not have a good enough credit score to get a mortgage. You lock in the home and its price while you work on your credit score and get it back to a level where you can get a home loan.
Rent to own homes is a method that people use especially during times of tight credit. Property investors like this because they can buy multitudes of houses without ever having to get a loan and damaging their credit.
Locating rent to own homes can be kind of tricky. Few people are aware of this method of buying and selling homes. You as a buyer should inform sellers of this method and hopefully have them go along with it.
To search for rent to own homes, go online and use any homes for sale website. Make sure the homes are being sold by owner so that you can just contact the owner and ask if they would like to sell their home by rent to own. Tell the owner that you are unable to get a loan right now but would like to acquire the home through rent to own. Then later on down the road, you will purchase the home with a loan.
When purchasing rent to own homes, you can bargain on many different items. For example, you can try to lower the down payment, the rent, and the purchase price.
Once you rent to own homes, you have to take care of the property just as though it was your own home. When the contractual period ends and you decide not to get a loan and purchase the home, you will not be able to recover your down payment or and of the extra rent that you paid.