There are many reasons to own a home: home ownership is a great investment, geographical stability usually translates into financial stability, owning a home means building personal equity instead of the equity of a landlord etc.
This article is not about the benefits of home ownership, but the benefits of becoming a home owner through the increasingly popular rent to own financing option. Very few potential home buyers are aware of the incredible benefits that await them through this financing route.
Try Before You Buy
In most industries, consumers are allowed to try a product before they buy it. It has only been recently, with the adoption of the rent to own model, that prospective home owners are now able to “try before they buy”.
Because most Lease Option contracts are 12 – 36 months, and because most of those contracts do not obligate the tenant to purchase, prospective buyers can essentially test the home before fully committing to owning it.
Buy Some Time
It is pretty common knowledge that we are in a buyer’s market right now. Interest rates are low, housing prices are low and home sellers are having to make concessions for buyers in order to sell their houses. Many prospective home owners (and investors) realize that these market conditions won’t last forever but aren’t in any position currently to be purchasing a house.
By financing a purchase with the rent to own option, prospective buyers are able to give themselves more time to get money together, to improve their credit or to lock in current housing prices.
Low Initial Cost
Compared to the massive down payments that most lending companies require before gaining approval for a mortgage, the fees associated with rent to own properties are incredibly low. For individuals who want to keep their life savings in the bank, the rent to own option will allow them to make slightly higher monthly payments instead of a larger upfront payment.
Lower initial cost also means lower risk of losing large amounts of money.
Credit Problems Go Away
A large majority of rent to own homes are owner financed. Translation: You don’t need to get a mortgage from the bank, you pay the home owner directly. Many sellers will use the initial 12 – 36 months to test out the reliability of the tenant in making monthly mortgage type payments.
Even if you have poor credit, having the opportunity to prove your reliability to the home owner directly can significantly improve your purchasing power.
Move In Faster
The paperwork involved in traditional home owner financing can be a nightmare. Between the home owner, the financing company and the inspectors, you could be waiting months for all the red tape before you finally get to move into your home.
With rent to own financing you could be in your home much faster. In most cases, by dealing with the home owner directly, you are able to bypass much of the time wasting activity of the lending companies.
Now that you know 5 of the benefits to renting you way to home ownership, take a look at several of our high quality listing. See what home is waiting for you http://www.rentuntilyouown.com/.