Jul/100
Why Rent-to-Home
The current economic problems have hindered the ability for some people to purchase a home. To ease out this problem, Rent-to-Home is gaining momentum. A very simple and effective way to buy a house is through Rent-to-Home
Rent-to-Home, also known as Lease-to-Own, is an arrangement whereby individuals rent a home to a possible buyer. The rent that is paid is the down payment of your home. The down payment is made through the 36 months of rental income. Additional rent premiums can be made towards the purchase price of the home. The renter may be requested to pay 1%-5% of the price each month as set forth in a contract. Along with rent, the borrower/renter may also pay an option fee of 1%-5% of the price which is attributed to the purchase price. Should renters decide not to purchase the house; premiums and option fees will be lost.
A Rent-to-Home contract needs to be concise in its wording for both buyer and seller to avoid any later discrepancies. The slow buying market has many home owners sitting on property they cannot sell. The Rent-to-Home option gives both buyer and seller the opportunity to benefit in today's economy. It is not unusual for a buyer to request owner financing by the seller when purchasing the residence. Bank mortgages are becoming more cumbersome and have buyers opting for homes where the owner does the financing of all or part of the price.
Owner financing is a great alternative for families who have a less than perfect credit score and are unable to obtain a home loan. This is mutually beneficial since the monthly installment and down payment is negotiable. Both parties agree on an interest rate, term of loan, and amount of monthly payments. Flexible payment options may include balloon payment, interest only, or rate amortization.
Interest rates can be adjusted by the owner if agreed upon as the market changes. Rent-to-Home and owner-financed properties have become beneficial options for buyers as well as sellers. Owners needing to sell may find these choices advantageous due to an unsteady housing market.
The buyer is given a chance to purchase a home without the difficulty of obtaining a down payment or problematic mortgage. The reward for both buyer and seller make Rent-to-Home a thriving alternative in today's housing market.
Be sure to visit the following sites for more interesting information: Lease to Own Houses Rent to own house listing