Visit: for more information on rent to own homes in your area and listings that you can qualify for.
Are you looking for homes that have a rent to own option in your area? If so, then there’s a few things you should know first before you decide to leas a home.
A rent-to-own or lease to own home agreement is when buyers sign a legal contract and they agree to rent the home for a set amount of time before exercising an option to purchase the property when or before the contracted lease expires (Usually within 1-3 years) In most cases, as with mortgages, rent to own homes still has credit worthiness and deposit requirements
Thankfully for people who has financial and credit issues there’s H.O.P.E (Home Ownership Is Possible With Education) The H.O.P.E Program has helped over 12,000+ people get homes who NEVER thought they could, helping those even with bad credit get qualified. This program also gives access to thousands of listings for rent to own homes.
How are rent to own options for?
First-time buyers; new parents or college graduates.
An excellent option for people who want – but are not financially ready – to become homeowners. A rent-to-own agreement gives them the chance to get their finances in order (by improving their credit score and saving money for a down payment, for example) while “locking in” the house they’d like to own. If the option money or a percentage of the rent goes toward the purchase price, they also get to start building some equity.
To make rent-to-own work, potential buyers need to be confident that they’ll be ready to make the purchase when the lease term expires. Otherwise, they will have paid the “option money” – which could be substantial – and a premium on rent for 12 to 36 months, with nothing to show at the end.
Somethings To Expect Before You Rent To Own A Home
In a rent-to-own agreement, potential buyers actually get to move into a house right away, with several years to work on improving their credit score and/or saving for a down payment. While many states have their own regulations, and no two rent-to-own contracts are alike, someone in a rent-to-own agreement typically rents the property for a set amount of time (usually one to three years), after which he or she can purchase the house from the seller. It’s not as simple as paying rent for three years and then buying the house: Certain terms and conditions must be met, in accordance with the contract. It is highly advisable to consult a lawyer and H.O.P.E when considering rent to own home options.
In a rent-to-own agreement, the potential buyer pays the seller a one-time, usually non-refundable fee called option money, or option consideration. (on average, ranges in between 2.5-7%)
During the term of the lease, the potential buyer pays the seller a specified amount of rent, usually each month. The lease term is negotiable, but frequently ranges between one and three years. In many contracts, a percentage of each monthly rent payment is applied to the balance of the purchase price.
Depending on the terms of the contract, the potential buyer may be responsible for maintaining the property and paying for any repairs, homeowners association fees, property taxes and insurance. Because the seller is ultimately responsible for association fees, taxes and insurance (it’s still his or her house, after all), the seller may choose to cover these costs.
If the potential buyer decides not to purchase the property (or is unable to secure financing) at the end of the lease term, the option expires. The buyer forfeits any money paid until that point, including the option money and any rent credit earned. If the buyer cannot purchase the property but has a legal obligation to (as stated in the contract), legal proceedings may be initiated.
Even though sometimes referred to as ‘bad credit mortgages’ a rent to own home option can be a great alternative for those would like to purchase a home of their own but not quite financially stable to purchase a new home outright. This is one of the best options for a soon to be home buyer to improve their credit, save for a down payment and build equity in a home that they want to buy.
Visit: to contact H.O.P.E and get more information on rent to own homes in your area and listings that you may qualify for.