Rent to Own Home

Can you really Rent To Own Home ?

You must have seen those little ads in your local paper that say Rent to Own Home or Rent to Own House. But where do you find the dream house you want to rent with an option to buy? What’s involved in a rent-to-own agreement? How does it work? And more importantly how can you rent to buy homes without being cheated?

Rent to Own is also known as lease purchase, lease to buy, rent with option to buy, lease to own, and lease with option to buy. These are all different terms for rental agreements with an option to buy the same property at pre-negotiated terms.

But Are You Still Wasting Your Time and Money?

Buying a home can be a tough decision especially when you have to support a family or start a life. Owning a home is certainly better than renting. If you desire to own your own home but are unable to obtain a bank loan today, leasing a home with an option to buy may sound like a good option.

A lease purchase can make your rent money work for you instead of making your landlord rich. When you make such an arrangement, you still rent your home, and your landlord is still the owner of the house. But part of your monthly rent goes toward your down payment. At the end of a specified period, you obtain a mortgage loan and buy the home you have been renting.

Let’s explain by the numbers. Say, you sign a rental agreement with your landlord, and you pay him $1,000 every month. In your contract you agree that your rent will be $800, and the remaining $200 will go toward the down payment of the home. That way, at the end of three years you save $7,200 ($200 per month x 12 months x 3 years) for down payment. Remember, your landlord still owns the house you are living in. At the end of a specified period, which is three years in this example, you find a mortgage loan for the rest of the money, and buy the house.

But the point is you are still paying a large amount of rent, a total of $28,800 ($800 x 12 months x 3 years) in the above example. So, isn’t it wiser to own a home now than later? It sure is. Now with the internet, lenders have worked out solutions for people with bad credit or who can’t afford a large down payment. If you desire to own your home, you can get mortgage loan quotes online to meet your special needs and goals. Feel free to use the links below to ask for quotes. You can realize your dreams sooner than you think. Happy shopping! 

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