Buying a lease to own home isn’t like a traditional purchase. Keep this guide handy to make sure you get everything out of your rent to own option.
There are two very mortgage alternatives with a lease to own option so it’s crucial that you understand which you’re getting into before you sign any contract.
The first type of rent before you buy option is when you buy a home on contract. This is where the owner provides financing for the house so it’s another form of sale.
The other type of agreement is a lease option. In the lease-to-own option, you’re still renting for a few years, but you lock in the option to buy the home.
1. Sales Price 2. Rent 3. Expert tip 4. Maintenance and Other Costs
There is actually benefit on both sides in a good rent to own agreement. As a buyer, you can lock-in a house that you might not be able to buy just yet.
Home sellers in a lease option might be able to get a higher price or at least market value plus the option money.