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The Way to Own Your Own Home In Today’s Market- Rent to Own!
To get into your own home, typically 10-20% is required as a down payment. With Rent to Own, the upfront payment , usually just 2-5% of the price of the property ,is required. This payment is then applied towards the price of the home. The upfront money or Option, with the lease agreement is made to purchase a home for a set price within the lease timeframe. With the purchase price of the home, you can lower that with each month you pay your rent on time. This is because a portion of your monthly rent is applied towards the purchase price. This is can be 25% up to 100%!
With traditional rentals, there is no rent credit. Even in a traditional loan, in the beginning, very little of your mortgage goes towards reducing the loan amount.
You can use this lease time to “test drive” the house to see if it is the perfect fit. During this time, property tax and fire insurance is the responsibility of the owner!
This is why Rent to Own is the way to go!
There must be a catch!
Rent must be paid on time, on the first of every month. If it is even 1 day late, you lose your credit for that month. By paying on time each month, the reward is a large portion of your rent will go towards the purchase price!
You are responsible for daily maintenance on the property. After all, this will be your home. If the sink clogs, a window breaks, or the shower leaks, you are responsible to fix it. Any major maintenance issues will usually be covered by the owner.
The upfront payment that is required to move into the property is not refundable if you do not purchase the home by the end of the lease period. There is time to shop for financing, save money, and clean up any credit report issues.
Sound Great? Check out our list of homes that are Rent to Own!
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