Many young people are often reluctant when it comes to buying their first home. Many of them choose to rent or live with family to save money for the near future. However, they are missing out on building equity and having concrete long-term financial goals.
A middle ground between buying and renting is a rent=to-own home. As explored in our other articles here at Rent to Own Home Finder, these agreements give prospective home buyers time to build their credit scores and later be able to qualify for a mortgage loan for the property they’ve been living in.
Did you know that many people qualify for housing assistance of all kinds? Getting your first home can be a tough path, especially because you don’t know what you don’t know. Don’t go it alone. Click here now to see if you qualify for housing assistance.
The Different Types of Rent to Own Homes
What are some of the housing options when it comes to rent to own homes? There are the traditional houses, but there are also apartments and condos, mobile homes, and fixer-upper – flipped – housing options to look at when looking at rent-to-own housing lease agreements.
The first thing you should do is decide exactly what type of home you want, and then start looking for it. Do you want a house or are you looking for an apartment? What size and location are you looking for?
There are various kinds of rent to own homes, but a good first step is to see what you might qualify for. Click here now to see if you qualify for a rent to own home– many people are pleasantly surprised.
Apartments and Condos
Rent-to-own apartments work very similarly to renting an apartment. Typically when renting an apartment, you will sign a lease and live in the apartment until the end of the lease when you will renew or move out.
In a rent-to-own lease, you will be given the option to purchase the apartment or condo that you’ve been renting. The leases are often longer – one to five years – than the typical apartment lease.
Manufactured or mobile homes are homes that are built by a manufacturer or factory. These structures can be placed on a piece of land and moved later if the owner wants to move it. Mobile homes are often much less expensive than a traditional house would be.
However, a rent-to-own mobile home can be hard to find and are often not that common. They are typically only on the market as rent-to-own when it has been on the market for a long time, but the owner cannot sell it outright. You could also offer a rent-to-own agreement to an owner if you notice that the mobile home has been listed for a long time.
The owner could have also rented it out prior and the tenant has offered to purchase it at a later date. The owner could then enter a rent-to-own agreement with the tenant and sell it to them later.
If you see a rent-to-own mobile home on the market, act fast! They are often not on the market very long due to availability.
A fixer-upper house is a property that is available for purchase at a lower market value due to a major overhaul of maintenance and repairs. These properties are often a way for a homebuyer to build equity as they do repairs on the property.
A rent-to-own fixer-upper is rare to find due to liability concerns as the repairs are being done. The lease agreement will need to include who is responsible for what kinds of repairs. As a renter, you may be responsible for all of them or just basic fixes while the landlord does the major fixes, like new plumbing or updating the electrical system.
If you are good with your hands and know a lot about do-it-yourself maintenance, it may be worth looking into rent-to-own a fixer-upper home!
There are a few different options for rent-to-own homes, and it’s important to know what your options are before you dive in. Different scenarios and family sizes will require different types of homes, like how much space you need and the eventual financing you will be required to come up with at the end of your lease agreement. As always, t’s important to do rigorous research on different rent-to-own properties and decide which housing option is right for you!
No matter which rent to own home option you think sounds best, the first thing you should do is see exactly what you might qualify for. Click here to see if you qualify for a rent to own home and begin your journey to becoming a home owner.