Buying a home is the ultimate step forward for any family and represents an important time in your life. Many people finally the reach the point in life where they are financially stable enough to buy their own home, only to realize that their credit score doesn’t enable them to do so.
Rent to own homes are the perfect way to “lock down” your dream home and live there until you are stable enough to make a down payment, commit to a mortgage, and finalize the sale. If you’re looking into taking advantage of a rent to own home, you may be confused as to how the process works. Here are the answers to a few commonly asked questions regarding rent to own homes:
What is a rent to own home? A rent to own home is a property that you pay a monthly rent for, similar to an apartment or a standard rental house. While an apartment or rental lease usually lasts for about 12 to 18 months, rent to own leases can be extended for several years. Renters pay an “option fee,” which is a non-refundable deposit that secures your future in the home for as long as you choose to live there.
What are the benefits of a rent to own home? Rent to own homes are ideal for younger couples who either have poor credit or do not have the means to make hefty down payments. About 79% of Americans who rent to own are between the ages of 18-44, as many people in early to mid-adulthood fall into one of the two aforementioned categories. A rent to own home gives you the option of leasing for as long as you’d like while you improve your credit score and/or save for a down payment, preventing anyone from purchasing the home in the meantime. Should you wish to not make the purchase after your lease expires, you’re free to decline exercising your purchase option and move to another home.
How do I find houses for rent in my area? As is the case with most things in 2015, the best place to find a rent to own home is searching online through a trusted real estate investment company. These companies can find the perfect home to meet your requirements for monthly rental payments and leasing options. Be sure to find a real estate company that is well-versed in the idiosyncrasies of rent to own properties and will work with you to find a great home that you can afford and enjoy for years to come.