Homes for Rent to Own
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How to Find a Rent to Own Home
By Wendy Polisi
As a general rule, it is safe to assume that most home owners are not interested in offering a rent to own or lease to own option. Instead, most home owners would prefer to sell their homes outright, allowing them to be done with it and move on. This means when the real estate market is booming, it can be almost impossible to find a rent to own home and it can also be difficult to find them in highly desirable areas. However, when the real estate market is slow or if the house in question is in a less desirable area, finding a rent to own home becomes considerably easier.
The first option is to simply approach seller and make them an offer. It is always fairly easy to find homes that are currently on the market and sometimes you can also see how long they have been on the market. Often, the longer a home has been on the market, the more receptive the owner might be to a rent to own home arrangement, though this is not always the case. Anyway, once you find the property you are interested in, you can approach the owner directly and propose a rent to own home arrangement and the seller can either accept or decline. Bear in mind that most rent to own home agreements are fully negotiable, so it is important to make your proposal with a good understanding of all the issues involved so you can address any questions or concerns the seller may have.
The other option is to go through a rent to own home provider service. These services generally have a list of available properties where the owner is willing to accept a rent to own home agreement and also have comprehensive contracts and processes in place to make the entire process run smoothly. This last can be a big money saver since presumably the provider service is already familiar with most of the issues involved in these arrangements, including many details that might be easily overlooked by non-professionals. Even if the provider service does not have a property that meets your requirements already available, they may be able to approach the property owner on your behalf and make a more convincing argument in support of accepting a rent to own home agreement.
To learn more about how to get into a rent to own [http://www.financethedream.com/overcoming-top-7-myths-about-rent-to-own-homes-deals-for-buyers] home, or for help finding houses for rent to own [http://www.financethedream.com/] please visit Finance the Dream.
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Rent to Own Homes - A Solution in Today's Market!
By Wendy Polisi
Prior to the collapse of the United States real estate market, it was virtually impossible to get a good deal when buying a home through a rent to own agreement. Since almost anyone could get a traditional mortgage, there was not much motivation for home owners to offer the option to rent to own. Why wait when they could get all of their cash up front and move on? Today, the market has changed considerable.
Thanks to the market collapse, credit crunch and ongoing recessions, the landscape of the entire market has shifted considerably. In the present economy, it is fairly easy to find sellers who are willing to consider a rent to own or owner financing situation. This is good news to the many buyers who no longer are able to qualify for a home loan.
A key advantage to sellers is that the willingness to accept a rent to own agreement greatly increases the number of people who can possibly buy their home. Increasing the pool of buyers can greatly decrease the marketing time of the home. Additionally, when a seller sells with rent to own, they are not required to offer a discounted price like they likely would if they sold through conventional means. Rather, they are able to command full fair market value.
The main reason the tenant buyers find rent to own arrangement so attractive is that they are able to move into the home that they plan on eventually owning now. They are able to enjoy the home for a couple of years while working on improving their credit enough so that they can qualify for traditional financing. Additionally, a portion of each monthly payment goes towards the purchase price in the form of a rent credit, so they are building equity from day one. Another reason many buyers like rent to own homes is that it allows them to experience what it is like living in a home before they make a long term binding commitment.
Since rent to own agreements are basically unregulated, pretty much all aspects considering them are negotiable. (Of course, there are some minimal state requirements) There are, however, standard features of a rent to own contract. One is that most call for a non-refundable option fee. Also, the rent credit is another standard feature. Most contracts also stipulate the agreed upon purchase price.
A properly structured rent to own agreement can work to the advantage of both the buyer and seller!
To learn more about how rent to own homes contracts [http://www.financethedream.com/rent-to-own-contracts/] can benefit both buyers and sellers or to learn more about selling your home fast [http://www.financethedream.com/sell-your-home-fast-2/] with rent to own, please visit us on the web.
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Rent-to-Own Homes - A Blessing For Renters
By Jessica B
Earlier, home ownership was a distant dream for the middle-to-high income group people if they did not have good deposit and excellent credit. Whereas, today with "rent to own" schemes, anybody like new graduates, people with poor or average credit history, single professionals, newlyweds, single parents with kids, new immigrants could choose to buy their own home and not need to rent. Misconceptions that excellent credit score or great savings is a must to buy a house has made people believe that the owning a home is a distant dream. If you are one of those who have been pondering over such misconceptions and unable to make a concrete decision, then the Rent to Own homes scheme is a wonderful option for you.
The innovative rent to own method helps people to own a property of their own in their preferred and good residential areas. Even people with poor credit score can now own a house rather than renting through the the rent to own route. This scheme gives people time to fix their credit ratings but not need to wait to get on the property ladder and helps those who are willing to own their house. The rent to own scheme is also referred as Rent to Buy or "Vendor Finance" or "No Bank" scheme.It is also a good alternative to "First Time Buyer Mortgages".
Pros of rent to own homes for renters:
- 10-30 year commitment is not required from the buyers in order to assess a neighborhood and property.
- It is easily accessible to the buyers irrespective of their credit history or financial status.
- In case you do not like the property, you can walk away.
- The tenant does not pay dead rent money and actually pays towards a purchase.
Cons of rent to own homes for renters:
- Tenant buyers may lose the option fee along with their rent credit money, if planned to walk away.
- Tenant buyers must pay on time just like a tenant. One can occasionally get rent holidays.
- Any repair in a rented house automatically becomes the responsibility of the tenant buyer.
Rent to Own is said to be like ray of hope for all those who wish to own the house they are renting at the moment. Now, you can be among those who may strive to realize their dreams into reality.
Tenant Buyers are advised to conduct a thorough study of the property before committing themselves to purchase it to enter into a good, safe, and beneficial deal.
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Why a Rent to Own Home May Be Right For You!
By Vincent Polisi
If you have been thinking about getting a rent to own home but want to learn more about why it is a good decision, then you will want to read this article. Specifically, we are going to discuss how renting to own gives you easy entry into a home allowing you to enjoy the home now while working to improve your credit. After reading this article you should have better idea if it is time for you to start looking at rent to own home listings!
With credit standards tightening, more and more people are looking towards renting to own. It's no surprise, as renting to own allows just about anyone easy entry into a new home. One benefit is that the money required down is less than most mortgages these days. A typical option fee is between 2% and 5% of the purchase price of the home. As long as you have enough cash to pay the option fee, you can typically avoid any strict credit qualifying. Additionally, unlike qualifying for a conventional mortgage, there is very little paperwork or hassle.
It addition to offering easy entry, a key benefit of renting to own is that you don't have to wait until you qualify for a mortgage to begin enjoying your dream home! Many people get discouraged when they find out that their credit is not good enough to qualify for a mortgage. They feel that they will have to delay having the life they want until they can get their credit in line. With a rent to own home, you can begin enjoying your dream home now! You won't have to wait to make any changes to the home because most rent to own home contracts allow you to make improvements to the home without consulting the owner. So you and your family can enjoy most of the benefits of owning your own home without the wait!
The key to success with a rent to own home is having the time to improve your credit so that you can qualify for a mortgage. After all, why spend money on a option fee if you are not eventually going to make the home your own? As long as you begin working on your credit immediately and have a long enough option period, most people can easily qualify for a mortgage. Just to be safe, consider an option period of at least 24 months. Many rent to own programs will report your payment to the credit bureaus which allows you to qualify for a home loan even sooner.
There are many benefits of getting into a rent to own home. You and your family can enjoy your dream home today, avoid the hassle of a traditional mortgage and have the time to get your credit repaired. Hopefully by now you have an idea if a rent to own home is right for your family!
Vincent Polisi [http://www.liferebooted.org/about/] is the founder of financethedream.com, the nation's premier rent to own home program. To view rent to own home listings [http://www.financethedream.com], please visit them on the web.
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Rent To Own Homes - A Viable Option for Credit Challenged Home Buyers and Frustrated Sellers in 2008
By Jay Mathison
The typical rent to own buyer desperately wants to become a home owner but their credit scores aren't sufficient enough to qualify for a reasonable mortgage at the present time.
The rent to own buyer will typically need 6 - 24 months to rebuild credit, accrue monthly rental credits, and to save money for their down payment.
The advantage to the buyer is they can live in the home now while they get their financial affairs in order, lock the price and build down payment credits.
The advantage to the seller is they typically have a much stronger tenant living in their home vs. the typical rental scenario. The seller also collects a larger, non-refundable option fee down payment from the tenant. The tenant now has a vested interest in maintaining and buying the property from the seller at the end of the option period.
Credit repair is an extremely important component of the rent to own home buying process. The buyer must be proactively working on building better credit throughout the option period. It is recommended that the rent to own buyer works with a respected lender and/or credit repair firm to assist with the credit rebuild. The seller should also be working with their future buyer to ensure they remain on track to purchase their home.
Due to the current ailing real estate market, it is critical that the rent to own buyer and the seller work together as a team. Some of the major issues everyone needs to pay close attention to are:
- Is the property valued correctly? If not, the buyer runs the risk of having difficulties when they try to get their financing. If the house doesn't appraise for the agreed upon sales price, the seller needs to step up and renegotiate or risk losing the deal all together.
- Is the buyer making on time rental payments each and every month? A good lender will be able to use this "on time" documented payment history to the benefit of the rent to own buyer at closing time.
- Is the seller willing to credit the buyer (rent credits) for "on time" rental payments? This is extremely important in assisting the rent to own buyer with building additional down payment funds.
- Is the seller meeting all their mortgage repayment obligations while the tenant is preparing to buy the home? Unfortunately, there are some cases where the seller has defaulted on their mortgage obligations and the home has fallen into foreclosure before the rent to own buyer has had a chance to buy the home. This is rare but it could happen...be careful...ask to see the buyers current mortgage statements every so often.
- Is the sellers title free and clear? This is a very important to look into because the seller could have difficulties closing if they have a big lien or judgment attached to their home.
There are a few things to watch out for when entering into a rent to own agreement but for the most part it can be a very viable option for both parties. The seller is able to sell his/her home creatively in a slower real estate market and the buyer locks into a price and has time to build their credit.
Pinyon Properties, Inc., a Chicago based real estate company, launched [http://ChicagoRentToOwnHomes.com] in 2007 specializing in rent to own homes, also know as lease option, lease purchase or lease with the option to buy.
The company's primary focus is in the Western Suburbs of Chicago, targeting affordable homes in the median income range. The rent to own homes are all in wonderful condition... many are near new, most are less than 10 years old and at bare minimum have just been renovated.
The results have been fantastic thus far. Listen to what people are saying:
"My husband and I would like to thank you for the time and effort in helping us find a wonderful home for our family so quickly. Working with you and Chicago Rent To Own Homes has been both a pleasant and easy experience. Your program is very much appreciated for hard working families like ours who have had a difficult time trying to purchase a home. I will definitely recommend you to others looking for a rent to own home of their own. Thank you again! P.S. My children love their new back yard. Sincerely, The Davis Family"
If you're a buyer or a seller and want to learn more, [http://ChicagoRentToOwnHomes.com] would be happy to discuss all your options and educate you on the rent to own process.
Jay B. Mathison, Pinyon Properties, Inc., Oswego, IL 60543, Phone: 630-886-3882, [email protected] [http://ChicagoRentToOwnHomes.com]
Article Source: https://EzineArticles.com/expert/Jay_Mathison/194643
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Benefits of a Rent to Own Home
By Charles W. Moore
The benefits of rent to own homes are immense. Buying properties by the rent to own method helps in acquiring the ownership of the concerned homes, without dealing with the banks and mortgage companies.
The idea of the rent to own properties is growing very briskly in the real estate market. Some people choose this option just for the sake of checking out the neighborhood, prior to giving full commitment of purchasing the property. The overall outlook of the rent to own homes, make them a perfect solution for the investors.
Most of the people have found their ideal homes by the process of rent to own. Renting to own is fast becoming the preferred choice of the first time investors in the real estate market. This method is similar to the method used for the rent to own vehicles, wherein the vehicle is first leased, and during the lease if the person likes it, the decision of purchasing it is taken.
The fact that the down payments required in the real estate market are increasing with the time, will not be negated by anyone. In such a scenario, buying the rent to own homes is a much better choice, as the down payments required to be made in this method are very low.
Another important benefit of rent to own homes is that the individuals do not have to worry about the closing costs of the property. The agreement regarding the appropriate price of the house is done between the buyer and the landlord.
In some cases, the payments made towards the rent are accumulated by the landlord as payments towards the price of purchasing the property. In such cases, the landlord asks for a payment that is higher than a month's rent. This is done for substitution of a large down payment. But, these rates are negotiable.
Another benefit of rent to own homes is, the renters can decide during the course of the lease about not buying the property in the future. This is permitted without any kind of repercussions.
The price of the concerned property remains the same throughout the period of the lease. The landlord is not permitted to increase the price during the course of the lease.
Rent to own investors have to keep in mind the ailments of buying property through the rent to own option. There are potential considerations in buying rent to own homes. This is because, the tenant buyer deals with an investor and not with any financial institution or bank, for this purpose.
The unscrupulous investor, who have a better understanding of the fundamentals of the real estate market, can cheat the new tenant buyers into signing a bad deal. Hence, it is always recommended that the buyers do a thorough review of the property before investing in it. The inspection of the property will result in a proper deal that will prove fruitful in the future for the tenant buyer.
Charles W. Moore, a U.S. Army Veteran began Real Estate Investing in 2001. He's a Successful Investor, and Author of, "Million Dollar Rent To Own Real Estate Secrets Exposed." Get his Free Report on Rent To Own Real Estate Investing [http://www.Rent2OwnExposed.com] at: [http://www.Rent2OwnExposed.com] - Learn Real Estate Investing, Stocks Markets and Internet Marketing, visit: http://www.REIeBooks.com
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