Rent to Own Houses - How Can You Benefit?
 | Rent to own houses being offered sometimes make buyers nervous. But, buying a house this way can be a fantastic way to get a great deal on a home. Even with bad credit! lease to own homes in mississippi A number of professionals in the Real Estate world dislike the "Lease Purchase" or "Rent to Own" method of selling a home. I agree with them that this can be a big money pit if not done right. An unsuspecting tenant could lose thousands of dollars trying to purchase a home with this method if they don't do their homework before signing the paperwork. With that said, when a rent to own transaction is structured properly and objectively there are many benefits to the tenant/buyer. I would like to point out a few of the benefits in this post. Here are a few: When you sign the option agreement with the homeowner, you lock in the option price at today's price. If you sign a 24 month option agreement in an appreciating market, you get to KEEP all that equity and purchase at the option amount originally agreed on 24 months earlier. Your option fee goes toward the purchase price. We collect 3.5% for the option fee. This is the minimum amount required for a FHA loan. The option fee is the fee you pay to lock in the option price upfront. Each month a portion of your rent is credited toward to purchase price of the home. If structured correctly these credits can be used to pay for your closing costs when you go to close on the home. So, you can setup the "lease purchase" so you bring very little money to the closing table when you go to purchase! You control the property during the option period. The homeowner can not sell the home while you are renting and leave you up the creek having to find a new home to rent. We get calls from tenants constantly who have to find a new home because the home they are renting sold. You can take your time shopping for the best possible loan available when you purchase. Also, you don't have to rush to meet your closing date like when you do a straight purchase. Knowing those benefits, I am sure it is clear how beneficial it is to rent to own houses in your market. Especially in this environment. rent to own homes in mississippi |
