Benefits of Rent-To-Own for the Tenant/Buyer |
|
|
|
- Minimum cash may be required up front. Sometimes buyers with credit problems will benefit from this purchase method, since sellers may finance you, OR the method affords you time to repair less-than-stellar credit before you purchase, using a mortgage loan you acquire yourself.
- Your home buying power is increased, as you now have the ability to purchase using alternative methods (Lease Purchase or Lease Option).
- You have faster equity growth than if you were just renting, and faster than with conventional financing. Some of your rental or option money is working for you towards the purchase. You may have a lower down payment at closing since you will have option money or rental credits to apply. By the time you purchase, prices may have appreciated beyond your locked-in price, giving you additional equity when you eventually sell.
- A lease purchase gives you sufficient time to check out all the features and faults of the house. Also, you have time to check out the neighborhood, schools, churches, temples, synagogues, nearby shopping, health care facilities, recreation, and your next door neighbor before you buy the house.
- With a lease purchase, you skip paying closing costs, traditional down payment and other fees normally found in a purchase using conventional mortgages.
- While you are leasing, you have no taxes or property insurance to pay (the owner does that). Major repairs are normally the owner's responsibility until you buy the house, at which time YOU become the owner!
- Every type of home is available for lease purchase in all price ranges and locations.
|
Information 
