What is Rent To Own?
Move in immediately
No more moving!
WELCOME HOME
No property taxes
You don't have to pay any property taxes until you purchase the property.
The price will not change
The price in the option agreement is the price you will pay. (you can keep property appreciation)
Banks will love you
Banks will see that you have already put a substantial down payment on the home.
Build equity with rent payments
Part of your rent payments can be applied to your purchase amount - and this is much faster than a new loan.
The option fee you pay goes directly to the purchase price.
You move in with equity already in your home.
You don't need great credit to qualify
It's not like a bank that has to follow certain guidelines.
You don't need to pay realtor commisions
A win-win! saving up to 6% right off the top.
In summary, you get...
- Maximum leverage: You are spending very little money to control a potentially very expensive, and very profitable, piece of real estate.
- Time: Before you actually buy the home, (depending on your agreement) to repair your credit, find the best interest rates, investigate the home and research the neighborhood and/or schools.
- Privacy: Your name will not be on the deed or in the public records until you exercise your option to buy.
- Peace of mind: You will have full control of the home and can maintain or improve it however you wish.
A bit more information can be found here:
https://www.investopedia.com/updates/rent-to-own-homes/
The Ideal Rent-to-Own Candidate
A rent-to-own agreement can be an excellent option if you’re an aspiring homeowner but aren’t quite ready, financially speaking. These agreements give you the chance to get your finances in order, improve your credit score, and save money for a down payment while “locking in” the house you’d like to own. If the option money and/or a percentage of the rent goes toward the purchase price, which they often do, you also get to build some equity.
While rent-to-own agreements have traditionally been geared toward people who can’t qualify for conforming loans, there’s a second group of candidates who have been largely overlooked by the rent-to-own industry: people who can’t get mortgages in pricey, non-conforming loan markets. “In high-cost urban real estate markets, where jumbo (nonconforming) loans are the standard, there is a large demand for a better solution for financially viable, credit-worthy people who can’t get or don’t want a mortgage yet,” says Marjorie Scholtz, founder and CEO of Verbhouse, a San Francisco–based start-up that’s redefining the rent-to-own market.
“As home prices rise and more and more cities are priced out of conforming loan limits and pushed into jumbo loans, the problem shifts from consumers to the home finance industry,” says Scholtz. With strict automatic underwriting guidelines and 20% to 40% down-payment requirements, even financially capable people can have trouble obtaining financing in these markets.