Facts about rent to own home options
Suggested: Rent to own: Facts & Tips; All you need to know about the ‘rent to own’ option
The process of rent to own homes is very similar to the rent to own car methods, where the potential customers of the car rent the vehicle for a predetermined period of time and within this period if they like the car then they go ahead with the decision of purchasing the car.
Before giving a full commitment on buying a house, real estate investors can inspect the whole condition of the house by actually lresiding in it as renters. The overall advantage of the rent to own homes make them a good way to make a real estate investment.
The idea of rent to own home is rapidly growing and the business in this sector is brisk as the future home owners can get comprehensive information regarding the neighborhood before investing in the home. For the first time investors rent to own has become a good strategy. Most of the times the first time home owners find to their dismay that the down payments needed while purchasing a home is huge but when it comes to rent to own homes the down payment is very low.
People who opt to buy a home through a rent to own home process can have a first hand experience of living in the house and actually try it out for a few years before making the decision of buying the house.
If you are a buyer then here are a few reasons why the rent to own can be an valuable tool for you. In case you are someone with a bad credit record then it will be really hard for you to get finance for your house acquisition. Even if you have a good credit and want to take a loan mortgage, you will have to pay twenty percent of the price of the house as down payment. Most of the times buyers lack this kind of qualifications, compared to this the rent to own is a much easier alternative if you are cash strapped.
The prospective buyers take the lease of the house for about two years by paying a mere two percent of the price of the house as down payment , and you have to agree to pay a monthly rent for the entire span of two years. A part of the monthly rent will be accredited to the rent credit account which will be subtracted from the purchase price of the house after two years, so that you will have to pay a lesser amount of money for the house.
The good part about the rent to own properties is that the buyers are not obligated to purchase the property after the lease expires, the power rests in the hand of the buyer whether he wants to make the buy or not.
So in case you do not have enough money to make a direct purchase, it will be a good idea to opt for the rent to own process.
Back to San Diego downtown real estate article index