If you are a frustrated renter who is tired of paying someone else’s mortgage and would like to own your own home, there are ways to buy real estate. One of them is Rent to own (RTO). This is a means of acquiring ownership over time. In RTO, the renter agrees to lease the home for a pre-determined time, usually two to three years. This is a way to settle on something that is right for you even if you are not in the position to make an immediate purchase. A lease purchase can make your rent money work for you instead of making your landlord rich.
Similar to a rent to own for a TV, you can have a rent to own for a home. In this case, most sellers that are willing to do this (and there are not many) will want a non-refundable deposit on the property, then you pay the landlord rent until you can purchase the property. The benefit of doing this is you get into your home with the intention of buying the house at a later date, at a pre-agreed price. A rent to own agreement, where a portion of the rent money goes directly to the payment of the home, could be saving you a lot of money in the long run.
This type of agreement works well for those who are new to the housing market or have made a job transition. Banks usually want you in a job for a considerable period of time before considering you for a mortgage. They also hesitate to give mortgages to self-employed people or commissioned sales persons. RTO also works for anyone who needs to strengthen their credit or pay off an obligation before qualifying for a home purchase. The best part is that with a rent to own home, you get to live in the home you want to buy while you work on fixing up your credit. You don’t have to wait until the banks are satisfied that you are their perfect client.
This creative process is becoming more and more popular because it creates a “Win – Win” scenario. The Buyer is able to get into a home with limited money and credit, and the Seller is able to get a fair price for their home and get it sold more quickly.
