Rent To Own Houses – All The Facts You Needed To Know

While the economic scenario prevailing throughout the country may not be inspiring enough to purchase a new house, rent to own houses certainly do offer an excellent way to own a house. Not only does this make you the proud owner of a house, but the rent to buy program in itself offers you a significant number of benefits, including the chance to boost your credit limit. The sections below are aimed at giving more information about rent to own houses, and how you can actually own one.

a house

Understanding the Rent to Own House Program – What It Is
In the simplest terms, this is just another method which allows you to become a home owner. As per the program, the potential buyer (also referred to as the tenant buyer) agrees to take the house on a rental basis for a fixed time period. The rental for the property is also decided, although it must be significantly mentioned here that the length of the agreement in this type of deals are typically much longer than generic leases. An added advantage, and the one which is of specific interest to us at this point, is that the tenant is also given the opportunity to buy the house within the tenure of the agreement. Any payment that has been made in lieu of rent is then added up against the total price of the house, which is also discussed with the potential buyer beforehand.

Buyer Benefits – Advantages When Buying Rent to Own Houses
One of the most important benefits of these homes is that you do not have to wait any more before moving in. The condition applies even in cases where you may not be currently qualified to apply for a traditional bank loan. In fact, this is one amongst the most popular reasons why bank loan applications are being denied at an ever increasing rate. With lesser number of people now armed with the required budget for obtaining houses following standard procedure, makes rent to own houses an excellent choice. Moreover, and as mentioned above, any payment that you make in respect to your rent is added up to the total amount of the sale, thus also making your rent an investment.

Expenses Incurred – What to Expect
As a general rule, you will be asked to make a deposit to the seller. Although this is primary a token from your side clearly stating that you are interested in completing the deal, there are many other reasons why deposits are considered mandatory in most real estate dealings. Nevertheless, the deposit to be made is significantly less in amount when compared to those required to be put when you are looking to buy houses the general way. However, you must also remember that the deposit is typically non-refundable, and you lose claim to it once handled, even if you choose not to buy the house.

Bio: Steve Whitlatch is a real estate expert who has been involved in offering advice and rent to own information for more than seven years. In his leisure time, he researches more about the trends of home buying and mortgage programs.

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