Nowadays, it is very difficult to actually buy a brand new house. When people apply for a housing loan in order to buy their dream place, chances are you get declined by the bank due to the extremely high amount of money and credit you need.
Unlike when you go for a loan for rent to own homes which you get for a lower price, so the amount you will need from the creditors is lower and your loan application is more likely to get approved.
When you decide to buy a lease option, there are many perks that you get to enjoy. You get to enjoy an alternative payment option. In this kind of agreement, part of what you pay each moth during the rental period can be deducted from the total amount you have to pay as a purchase price of the whole property.
Another benefit of a lease to own house is that you can choose whether to just continue renting or simply buy the property at the end of the rental agreement.
Furthermore, a rent 2 own provides you the opportunity to try out living in the actual house you are eyeing (but, with rental fees of course). It is a benefit to live in the house before finally deciding to buy it in the long run.
In lease option houses, both tenants and property owners benefit from the terms agreed upon in the contract. As tenants, you get to live in the property and initially rent it out for up to several years.
In the end, you can opt to buy the property or you can simply let it go and find another one. On the other hand, the owners can also benefit from collections in rental fees for a long period. This is a very good source of passive income for the property owner.
During The Lease Period
While leasing the rent to own home, you get to improve your credit reputation. When you are able to regain control of your money, you get to save more for the home purchase. Enjoy your time renting, but make sure that you also save some money to gain confidence from creditors that proves you can actually pay for the loan you are applying for.
At the end of the day, you regain your credibility in paying the money and at the same time you get closer to qualifying for a mortgage.