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Tuesday, April 21, 2009

What are the Benefits when you Rent to Own a Home?

There are many benefits to those that choose to rent to own a home. If you have felt the ability to get into your own home wasn’t possible you definitely need to look at this possibility. More and more owners of homes are offering it than before too which means you will have quite a good selection no matter where you happen to be looking for a home.

There are several ways in which rent to own homes can occur. For example you may sign a lease for one or two years. During this period of time you get to decide if you wish to buy the home. You can get a feel for how it works for you and your family. If you decide at the end of the lease period that you don’t want to be committed to the home you can move out and that is the end of it.

However, if you do wish to remain in the home and to make it legally yours, you can do so. You also will have the benefit of those payments you have made during the course of your lease going towards the purchase price of the home so you will be building up equity along the way.

Some people don’t have good enough credit for one reason or another to get a home loan. Yet the really don’t want to be tossing their money away on rent. With the rent to own option though they can get what they need and not have the roadblocks from lenders standing in their way of owning a great home. They can also avoid the issue of coming up with a large sum of money as a down payment. Most sellers of rent to own homes are very reasonable when it comes to the down payment.

When you find a home that you wish to rent to own, you can iron out all of the details with the seller. They are often going to be more flexible with you than traditional lenders are. For example they may allow you to choose the day of the month that your payments are due and other factors that can affect your budget.

Since you don’t need to wait for inspections or for a closing date, you can move in at a time that works for both you and the seller. If you need a home right away this can be the solution that allows you to move in very quickly. If you need to finish out a lease on another place first, you have the ability to work with the seller so that you can end one and start this new agreement at a time that will work well for you.

As the property you are purchasing continues to grow in value, the equity that you have in it is going to increase. Since you will have a set interest rate with the seller, you will also always know what your monthly payments are going to be. There won’t be any surprises with variable rates that can result in you owing more each month than your budget can afford. As your income grows you can also pay advanced payments so that you will completely own your home in less time.

There are certainly plenty of great benefits to going the rent to own route for a home. If you feel that it may work for you learn more about it. Then you can get out there and find homes being sold under this umbrella. The rent to own option can be the right path for you to successfully own the home of your dreams.

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