have you already completed a form that only offered you two choices for your lifestyle? These two choices was probably 'Own home' or 'rent '. The reality is that there is a hybrid choice right smack dab in the middle of these two options called "Rent to Own", and it might be the right choice for you!
how does it work?
rent to own works exactly as it sounds. You pay your rent each month and at the end of a period of time, you have the possibility to buy the House. Monthly rent you pay is back for the seller, even if part of this rent goes toward a down payment to eventually buy the House if you wish.
rent-To-Own benefits
to own rental could be a good option if you don't want to blow all your savings on a down payment, or if your credit score is not quite where it needs to be to qualify for a traditional mortgage. Rent to own may also be a good option for those who may have lost a house in their past of a foreclosure. Here's another scenario: Let's say you want to live in a community with a great school district for your children but you can't swing the steep prices. Renting to own can be a great way to get a foot without breaking. Another advantage is that you can lock in a price now and find out how much you'll pay for the property at the end of the term of the lease.
Yes, what are the disadvantages?
to own rental can be a little more expensive than the basic rental, garden. Here's why: remember that part of your lease payment is devoted to the possible down payment on the House. Which can make your larger monthly payment it would be if you were not rent to own.
in addition, you must check to ensure that there are no arrears of taxes or the privileges that the current owner has committed, because you'll be responsible for them. Just as you heard "Buyer beware", it pays to rent to-owners to be wary as well.
overall, most experts believe that renting to own is more complex than renting. If you are going to pursue this option, do your homework and talk to an experienced real estate professional before you sign any contract.
If you need a place to start, try internal Realty. They will match you with the best real estate agents in your area.