Do you find it hard buying a home through conventional means? Rent to own houses is a viable route towards homeownership, which you should consider.
Rent prices within the US have increased by more than 10% annually over the recent past. Renting is, therefore, not budget-friendly as you save up to buy a home.
Renting to own houses allows you to move in faster and offers an easy process when acquiring a home. The dream of homeownership is now realizable even for people deeming it impossible.
Are you dreaming of owning a home even though you have poor credit? Then, continue reading to learn 7 key reasons that rent to own houses are an excellent option for you.
1. No Down-Payment Needed
You might wonder where to get the deposit needed when owning a home. Worry no more! Rent to own houses require no-down payment when entering into the agreement.
Accumulating large sums of cash is always a challenge for most people who are tight on a budget. As a result, homeownership delays due to most agreements requiring an initial down payment.
However, you might need to pay a rental deposit as part of the rental agreement. Rent to own is cheaper for most people without straining their budgets.
2. You Convert Rent Into an Investment
Are you tired of the regular rent payments that you don’t benefit from? Rent to own houses create the opportunity to convert your rent money into an investment.
Rent money, once paid, benefits only the landlord by supplementing their income. This puts you at a disadvantage as a renter since you get minimal value from your rent amount. Disengage from this traditional method; renting to own houses is the way to go.
Rent to own houses is a better deal since your rent payments accumulate towards purchasing the home. It is an easier option since you access an investment using the rent money hence better value.
3. Buy a Home With Bad Credit
Does having a poor credit score frustrate your efforts to own a home? You don’t need a good credit score for the rent to own houses.
Mortgage institutions insist on clients having excellent credit scores when seeking financing. Your credit score might have been affected, thus putting your homeownership plans on hold. Consider lease to own homes to have a house even as you seek to rebuild your credit in the future.
There is different rent to own agreements, each of which has specific risks. Rent to own houses agreements allow for poor credit housing, thus handling the risks.
Focus on settling your rental fee to ease ownership transfer at the end of the process.
4. You Don’t Deal With Property Taxes
If you’ve never dealt with property insurance and taxes before, they’re overwhelming. You don’t have to worry about property taxes with the rent to own houses agreement.
The home still belongs to the landlord even after you’ve initiated the rent to own agreement until completion. Therefore, your landlord will be responsible for property taxes and dealing with insurance. After completing the cumulative rent payments, the role of property taxes is yours now, and you’ll be ready for those expenses.
With lesser taxes, the tenants opt to pay higher rent, thus lessening the rental payment periods.
5. Equity Grows Faster Than Traditional Mortgages
In comparison to the average mortgage, the equity grows faster with the rent to own situation. It’s easier to guarantee you that the amounts will appreciate better.
For real estate experts, traditional mortgages are the preferred choice for home acquisition. As a result, the house is much more expensive than its actual price after the total mortgage is paid.
Rent to own processes use similar agreements that don’t attract interest. As a result, you pay a smaller sum than the home value. The lesser payments make the purchase price reasonable, thus gaining more worth on the home.
6. Gain Full Control of the Home
You wouldn’t want to stay in a basic house, right? Rent to own homes allow you to improve the house as you see fit upon moving in.
A home is a place that offers you peace of mind, meaning it has to be custom for your needs. Renting agreements prevent property alteration, which landlords term as damage to the house. Rent to own contracts give you complete control of the home right after you initialize the agreement.
You, therefore, are free to make adjustments and improvements as you deem fit.
7. Fixed Purchase Price
If you like to plan your finances, rent to own homes are for you. The agreement has a pre-determined fixed purchase price making budgeting easy for you.
An independent appraiser comes to determine the sale price as per the agreement. In retrospect, the sale price is set at the future price of the home. The fixed purchase price will therefore remain the same throughout the contract period.
You, therefore, don’t have to worry about potential increases in payments since there are none.
Disadvantages of Rent-to-Own Homes
As much as rent to own agreements are beneficial, they also could make you lose your money. With the huge demand of houses, scammers apply contract language to indicate an obligation to purchase.
The agreement has to be an option and not an obligation. Beware of such red flags.
Consider Rent to Own Houses
The homeownership process doesn’t have to be overwhelming. Rent to own houses ensure homeownership is more accessible for you even with a poor credit score. The above reasons are indicators of why renting to own homes is for everyone.
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We’re a trusted company helping home buyers find their dream home. We help buyers through the home search process, analyzing financing options and finalizing their dream home purchase.
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