Getting Started with Rent to Own Homes- Information About Buying a Home with a Lease OptionOwning a home is a primary goal for most everyone. Nearly two-thirds of the population are home owners. Home ownership provides tangible benefits, such as shelter, privacy, a higher quality of life, and over time can provide a financial return on investment in the form of equity. Due to the amount of money required to buy a home, mortgage financing is required so buyers can pay off their purchase in small monthly increments, over an extended length of time.
Lending restrictions or personal situations may make it difficult for motivated buyers to obtain a mortgage and buy a home in a traditional fashion. Fortunately for these types buyers, the ability to find a home to rent with an option to buy provides an alternate path to home ownership.
In this rent to own overview section, home renter-buyers can gain a fundamental understanding of the opportunity presented by lease option or rent to own properties. These fundamental principles can be applied to purchase any type of home. New and existing single family residences, condominiums, townhouses, mobile homes and manufactured homes...even vacant land can each be a candidate to rent with an option to buy.
What Is a Rent to Own Home
Start by exploring what is a rent to own home purchase arrangement, what type of buyer is best suited for this approach and how does it work. And get an introduction to the three key elements for buying rent to own housing.
Why is Rent to Own a Good Idea
Learn about the advantages of homes for rent to own. Time can be on the side of the rent to own home buyer. This time can be very valuable for those buyers with challenged credit histories. In addition, learn how to build a cash balance of purchase funds, simply by paying rent or fixing up the rent to own home!
How to Find Rent to Own Properties
Housing that is already advertised as a lease option or rent to buy home is only a portion of the total homes that can be sold through rent with an option to buy.
Of special interest are the key characteristics of these unlisted rent to own homes and the special motivations of their current owner - sellers.
Before shopping among rent to own homes, buyers need a firm understanding of their affordable rent rate and home purchase price. Fortunately, there are some easy to use formulas for calculating an estimated budget. Use these formulas to learn how lenders evaluate buyers. Find out how to set a rent to buy budget to get the right house at a payment that makes sense.