Are you thinking about buying a home but not sure if you can afford the property you want?
If so, then finding a rent to buy house, also known as a lease option home or lease purchase home, may be the right choice for you.
What To Know About Rent To Buy Real Estate
Typically, rent to own houses are offered as a form of seller financing, where the owner of the house is prepared to carry all or part of the home loan for a prospective buyer.
Buyers will pay a premium rental fee for a pre-set period of time, during which a portion of their rent each month will be credited towards their downpayment for the purchase of a home.
Most commonly, this seller financing will occur over a period of 12-36 months, during which time the buyer has time to accumulate enough equity in the property to bridge the gap and qualify for a bank loan or other form of refinancing.
This can be a great deal for a potential buyer who couldn’t otherwise afford to purchase a home, but buyers should be careful about the terms of the loan before signing any deal. Many times, the seller will put in clauses that allows him to repossess the home if any payment is late, meaning the buyer could potentially lose the additional money he had contributed towards the downpayment.
That means that while there can be great benefits to the deal, the devil is always in the details, and anyone considering a rent to own home purchase should consult with a qualified real estate lawyer before agreeing to any seemingly favorable seller-financing terms.
Where To Look
The following links are resources for individuals looking for rent to buy properties.