Rent to own houses are viable options for people who want to own a home but could not, for the moment, obtain mortgage because of poor credit standing.
Within 6 to 24 months, it will be possible for you to rebuild your credit, accrue monthly rental credits, and save money for your down payment.
Rent to own arrangements are beneficial because even while you are still working at your finances, you can already live in the house. Then you can lock the price and build down payment credits.
Having a rent to own tenant is more beneficial to a home seller since this type of tenant will natural care more for the house which could someday be his, than a regular tenant who will just leave when the tenure is finished. The seller will also collect a large non-refundable fee down payment from the tenant. When it comes to house maintenance, the new tenant will definitely have an interest in this until the end of the option period.
It is a very important component of the rent to own buying process that your credit be repaired. Having a good credit should be on one of the main concerns that you should be working on. A respected lender or credit repair firm is able to assist you In improving your credit standing. Meanwhile, the seller and the future buyer should work together to ensure that they are not distracted in the goal of purchasing the house.
It is very important for the rent to own seller and buyer work as a team. They both need to make sure that they have the correct value of the property. If not, you might have a difficult time getting financing. If the house appraisal does not match the agreed sales price, then the seller has to renegotiate in order not to lose the deal.
You duty is to ensure that your rental payments are paid on time. Your lender will be able to use this on time documented payment history to the benefit of the rent to own buyer at closing time.
If you pay the monthly rental payments on time, and the seller must be willing to credit you for this. With this credits you will be able to build up your additional down payment funds.
Check on the house title to see if it is free and clear. You should look into this because the seller could have difficulties closing if they have a big lien or judgment attached to the home.
These considerations are very important to ensure so that you will have a rent to own agreement without any problems. For the most part it is a viable option for both parties. The home is sold and the buyer is able to buy it with the locked price and has time to build his credit.