We all know that real estate property is not cheap. There are plenty of houses to buy, but securing a down payment and a mortgage is not always easy in today’s economy. You wake up one morning and say “Honey, I want to buy a house, but we don’t have enough and our credit score is not great.” If you are determined about your decision it is possible.
Instead of spending day in and day out looking at flats to rent, and finding yourself moving from place to place why not start looking at the option of rent to own housing? This option very simply gives you a way to rent while paying towards owning your own home.
Many people who own their homes have found this an attractive option too. If you have bought a new home but haven’t yet found a buyer, offering a rent to own scheme can save you having to pay two mortgages at once. If your “property for sale” ads have got you nowhere why not change them to rent to own?
Rent to own does carry risks of course and it is important that both parties have a clear contract and know exactly what they are getting into. Generally there is more risk to the renter than the seller. If at the end of the rent, or lease period you cannot secure a mortgage to buy the house the seller keeps all accumulated funds.
Rent to own is also more expensive that a straight rental, but you are gaining both credit score and putting money towards that down payment at the same time. The other advantage is that the price of the house remains the same as at the time of signing the contract.
When the contract is very clear rent to own can be an excellent option for both parties. So what are some of the questions to ask when buying a house through a rent to own scheme? As well as the normal questions you need to ask and agree about the length of the rental term, and who is responsible for any maintenance or repairs that may be needed during the rental time? When both parties are satisfied a legal contract can be drawn up and you can move into your new home.
