When you think of buying something on a rent to own basis, you think of furniture and appliances. But, you can actually buy a home based on the same principal. It’s just a matter of finding someone that is trying to sell a property that will agree to let you rent to own.
With a rent to own agreement, you can rent the home for a certain amount of time with the option of buying it. In many instances, owners will consider what rent you’ve paid as your down payment. These types of agreements generally state that you can rent with the option to buy after one or two years.
This is a really good way to buy a home if you can’t save up a down payment. Instead of just giving rent away, you’re investing it in a home that you’ll eventually own. Of course, that is if the owner is willing to take your rent payments as part of the down payment.
It’s also a great way to be paying money toward a home while you’re rebuilding a bad credit rating to be able to obtain a loan to purchase the home. If you have a low credit rating and no down payment, renting to own might be your only option of buying your own home.
Mon, Jun 8, 2009
Mortgages