If you’re looking to buy a home, but can’t afford the upfront costs of a new property, then you may decide to find a rent-to-own house in your area instead. Rent-to-own homes are similar to renting a normal property, with the only key difference being that in some cases you can buy the property for less than you would pay for it outright.
The benefit of this is twofold: 1) you get the benefits and luxuries of homeownership sooner rather than later and 2) your rental payments and fees can be applied to your downpayment! That means in many cases, the monthly payment becomes cheaper once you can buy the property for less than what you would pay if purchasing it upfront.
However, there are a few stumbling blocks with trying to find a homeowner willing to enter a rent-to-own agreement, especially in this current housing market where they would likely make more money from an outright sale than renting it out. Houses exit the market as quickly as they appear on it, making a homeowner or landlord more reluctant to enter a rent-to-own agreement.
Regardless, renting to own is worth looking into. So where should you start? The first thing is to click here see if you qualify for a rent to own home right now. One click and you can change your living situation more quickly than you may have thought.
Here are a few suggestions to get you moving on the path to homeownership.
Finding a Rent to Own Home
Contact a real estate agent: Call a real estate agent in your area and explain that you are looking at a rent-to-own option. Some agencies may have their own programs already set up, have ideas outside of rent-to-own agreements, or they may have clients who have had their homes on the market for a long time with no luck. Either way, consulting a real estate agent or broker will be very useful as you continue to search for rent-to-own properties.
Search rent-to-own home listing websites. These would include Rent to Own Home Finder, HousingList, RealtyStore, or iRentToOwn.
Search real estate websites: These will be sites like Trulia and Zillow that already have rental properties listed. Contact the owner or the listing agent and see if they would be interested in a rent-to-own contract.
Search recent foreclosures: While you won’t be able to go into a lease-purchase agreement with a homeowner whose property is already in foreclosure, you may be able to find a prospective owner who is in pre-foreclosure. The rent-to-own model would be attractive to them to avoid bad credit and would help them catch up on payments through the tenant’s rent payments.
Pitch the idea to a homeowner: Depending on how things go, you could suggest a rent-to-own plan to a home seller. If the homeowner has a pool of buyers who would purchase the home outright, it probably won’t go over well. However, if the house has been on the market for three months or more, the homeowner may be interested in considering the idea.
Suggest the idea to a landlord or property manager: This is also an attractive option if a property is already available to rent. It doesn’t hurt to ask the landlord or the property manager if they would be willing to enter a rent-to-own agreement with you. They may be willing to negotiate with you or they may say no outright. But you at least tried!
By employing the tips and resources listed above, you’ll be better prepared to find a rent-to-own home within your budget and needs. Do your research and look at your options. While finding a rent-to-own house seems a little more daunting than just finding an ordinary house to rent, it doesn’t have to be. Use the resources around you to get started and, with time and effort, you may be able to find that perfect property and enjoy many years of living in your dream home.
Remember: step one is to click here and start the approval process for your rent to own home now.