> Real Estate > Rent To Own ? Practical Solution For Many
Lease to own homes and rent to own homes are one and the same thing in that both provide you the chance to reside in a home with the option to purchase at a later date. What this means is that a homeowner makes their property available for rent however there is a lease option that stipulates that the renter/buyer will have the option to purchase the property later on, which is great news for many in today?s difficult economic situation!
In its most simplified interpretation, lease options are just contracts that assert that any given property is going to be leased for just a particular length of time. However, attached to this contract is the option to purchase at a future date. Thus, lease options are not at all like lease purchase agreements in the following, important way. A lease option permits an individual (read: the buyer) to purchase the home instead of being forced to buy the home as per the terms of a lease-purchase contract. In more casual terms, said lease options are typically used in a slower real estate market and by folks who either may not have the cash for an actual down payment or who just do not, at the moment, possess the capability of qualifying for a home loan of a more traditional nature.
Lease option contracts do require payment to access the option of purchasing at a later date. For the seller or owner of the property this could mean making a bit extra should the renter/buyer choose not to make use of the option so as to purchase the home when the lease option contract expires. However, if the renter does choose to purchase as per the lease option, the money he or she paid for this privilege is considered a down payment on the purchase price for the property.
Still, there are a few things you should think about prior to getting into a contract of this type. First, it is vital to settle just how much you will be paying on a monthly basis, and it is also vital to find out just how much of that payment is going to be utilized as the actual down payment. Figuring out just who is in charge of handling any repairs when they come up and who will manage the closing costs are also very important things to consider before you get into a lease-option contract.
Getting a home loan has never been more difficult than it is today. Lease to own homes are ideal for people to be able to own their perfect home. When you visit realtystore.com you will find that there are many available rent to own homes all around the country. Realtystore.com even offers homes available through foreclosure, FSBO, etc.
Source: http://realnews.galanter.net/2012/08/12/rent-to-own-practical-solution-for-many/
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