The Pros Of Rent To Own Financing

If you are a first time home buyer, or someone who has never heard of rent to own financing before, you may not be fully aware of the advantages of this type of home financing option. Financing a home, through a rent to own option on a lease, is becoming more and more popular as a means to satisfy buyers who need an alternative way to finance their home, and as a means to help those home sellers who are having trouble selling in the current market.

If there was ever a time to get involved in rent to own financing, now would be that time. Take a look at some of the pros that are listed in this article to help you get a better idea as to some of the options that rent to own financing can open up for you.

Paying Later For Today’s Price

It is no secret that the current housing market is a buyer’s market. Translation: Now is a fantastic time to be a home buyer. Because of the economic downturn, and the housing market crash of 2008, many homeowners are having a difficult time selling their homes. This has created a market of extremely inexpensive homes for sale.

With a rent to own option, you can leverage this fact by locking in homeowners to sell their home at the current market price, while you pay for it later down the road.

Little To No Down Payment

Unlike traditional financing, rent to own option financing offers a unique channel for those perspective home buyers to get into a home without having to put down a large amount of money. Aside from a very minimal fee, rent to own option financing offers a nearly zero down payment option to get into the house of your dreams, while buying you enough time to put together the money for a down payment on an actual mortgage.

Year Long Contracts

Most rent to own contracts are 12 to 36 months long. If you have bad credit, if you need time to come up with money for a down payment, or if you just want to test out a home for a year, the rent to own option is perfect for you.

During that 12 to 36 month long period, you could be putting away money for your mortgage, repairing past credit issues, or even building your current credit simply by making your payments on time. Having that extra time to get your affairs in order while still being able to lock in a great price on the home of your dreams, is one of the biggest perks to rent to own financing.

You Can Be A Huge Help To Home Buyers

Surprisingly, not every home owner trying to sell their home is aware of rent to own financing. In some cases you may be able to approach a home owner with a suggestion of rent to own financing.

At the very least, those home owners who are selling their house with the option of a rent to own lease option are much more willing to negotiate on home sale prices, conditions and value because they are more likely to want to sell their home as fast as possible.

There are many pros to using the rent to own option to purchase a home. Whether you are looking to invest, purchase your first home, or purchase your retirement home, the rent to own option is a fantastic way to maximize your leverage as a home buyer.

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