Guide to Rent to Own Homes

By Brian Luyuna

Rent to own homes are a great way for people to give home ownership a shot without actually having to get a loan. More and more people are giving this option a try considering loans are harder and harder to get and people are having reserves about buying a home.

The way rent to own homes works is the seller will act like a lender to the buyer. The seller and the buyer agree on a final purchase price of the home. The buyer makes a down payment on the house, and makes monthly rent payments. A portion of the rental payments will go towards reducing the final purchase price. At the end of some time, the buyer should get a loan and purchase the house.

By renting to own homes, you can buy homes fast without going through the drudgery of getting a loan. You obtain the house first and get the loan later.

Rent to own homes is a method that people use especially during times of tight credit. Property investors like this because they can buy multitudes of houses without ever having to get a loan and damaging their credit.

Finding rent to own homes can be kind of hard to do. Not many people are familiar with this method of selling homes. In many cases, you have to approach the owner of the house and ask if they are willing to sell their homes by rent to own.

To search for rent to own homes, go online and use any homes for sale website. Make sure the homes are being sold by owner so that you can just contact the owner and ask if they would like to sell their home by rent to own. Tell the owner that you are unable to get a loan right now but would like to acquire the home through rent to own. Then later on down the road, you will purchase the home with a loan.

When you decide to rent to own a home, there are many ways in which you can bargain. Try to get the owner to reduce your down payment, the monthly rent, or the final buying price of the home.

Once you rent to own homes, you have to take care of the property just as though it was your own home. When the contractual period ends and you decide not to get a loan and purchase the home, you will not be able to recover your down payment or and of the extra rent that you paid.

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