The Benefits of Renting to Own

Renting to own a home is a wonderful way for people who are not sure about their financial situation or their career to still be able to buy a home.

Renting to own is extremely popular among people who want the stability of renting but also want the prospect of owning their home.

Renting to own gives you the added benefit of a sense of ownership because that is what you’re working towards.

Renting to own also gives them time to save up for a down payment and get rid of any debt they may have before taking on the responsibility of owning a home.

First Step to Rent-to-Own a Home is Deciding to do it

You have to make sure that, in the future, you are financially ready to buy a home by making sure that you have enough money for the down payment, good credit, and a stable employment history.

The great benefit of rent to own is that you have time to work on your credit while you save for a down payment.

Let me touch on the down payment because many people freak out over the down payment. Why? Because some believe you need a 20% down payment. The 20% represents a percentage of the purchase price. For example, if the home you’re interested in is worth $200,000 then you’ll need to come up with $40,000. This represents a 20% down payment.

Let me give you a better solution. An FHA loan. With an FHA loan you’ll only need to come up with 3.5% down. This down payment assumes that your credit score is 580 or above.

If you can’t afford a down payment on your own, then it’s time to look into financing programs.

Lease Live Own has an eBook which shows you how to get the down payment if you don’t have it.

Remember with rent to own you buy yourself time to save some money for a down payment while you fix your credit. A typical rent to own situation is usually one to three years. So, this gives you plenty of time to make plans for home ownership.

 

When Is the Best Time to Rent-to-Own?

Anytime is a good time to find a rent to own situation. Instead of apartment living you can find a neighborhood that you like and get your dream home now. Rent to own is a powerful tool that benefits you and the home seller. When we say home seller, we also include landlords who own homes. Landlords are the best homeowners to deal with because they’re more likely to want to do a rent to own transaction with you.

3 Proven Guidelines for Successful RTOs (Rent to Own)

The Rent to Own process is a long-term investment where both you, the tenant, and landlord must be on the same page. It’s a good way to get the home you want if you can’t afford it at the time of purchase or need time to fix your credit.

There are three major guidelines for successful rent-to-owns:

1) Start with an honest conversation about your budget, needs, and timeline for homeownership.

2) Make sure you have the right education to find a rent town situation.

3) Work with the home seller or landlord directly and not a real estate agent.

Conclusion:

More people are moving toward a rent to own solution for their future because they realize that it has many benefits. It’s cheap, flexible, and can be tailored to suit your needs.

If you want to learn more about this powerful rent to own method, please visit our website to get more information.

If you want more information, please reach out.