When it comes to finding a home, there are many sale options. You can fully purchase the property, lease/rent the property, or you can rent to own it. Rent to own is an alternate way to buy the house, the only difference is that it's not set in stone when you sign the papers and you have more leeway when it comes to the requirements of the house! You agree to rent for a specific period of time with the option to buy the home before your lease is over.
You're Not Stuck!
When you rent to own, you are able to experience how it is to live on the property and decide how you like it there. You can decide to stay if you like the property, or you can leave without it being a big hassle.
Credit Score, No Issue!
When it comes to rent to owns, a bad credit score may not matter! Some renters may not require a minimum credit (though some may) and this is a big reason why it's so appealing. During this time, you can improve your credit score to work towards receiving a loan to fully purchase the home!
With many benefits, there may be some downfalls.
Rent to owns may require a higher than normal down payment as well as higher monthly payment. If you choose not to purchase the home in the end, then you lost more money in a rent to own agreement than you would a basic leasing agreement. Renting to own may also cost you if you are declined the offer to purchase the property due to late or missed payments during the renting period.
Price appreciation is when there is a price given and there can be no changes to it from the renter (increase or decrease in pricing)! Though this is a major benefit when it is given, it is not always guaranteed when you rent to own.
Learn more at www.BuyingAndSellingMD.com