In this short article we'll go through all the benefits of Rent to Own otherwise called Lease Option. I hope after reading this article that you come to realize just how amazing the Rent to Own system really is.
Most people understand the benefits of owning their own home and therefore want to achieve this dream. Reality is often a surprise to most. Getting a mortgage the traditional way can be very hard for anyone who's been unlucky with their credit scores. This is the most typical reason for now being able to purchase their own home. Rent to Own was created to help solve this problem.
Lets cover some of the benefits of Rent 2 Own:
Low Startup Cost
The startup cost when purchasing a Rent to Own home is substantially lower than with a traditional mortgage. With a traditional mortgage you're often putting down 5 - 10% (Minimum) and this doesn't even include purchasing costs. So if you're purchasing a home worth $300,000 you're looking at spending $15,000 - $30,000 and that's not factoring in closing costs. With Rent to Own you only pay a typical rental deposit + the option deposit which is far less.
Since you're technically not purchasing the home yet you won't have to pay any property taxes upfront.
Rapidly Increase Your Equity
Your Rent to Own payments will go towards equity in your home instead of wasted on normal rent. In every months rent check a part of that rent will go towards your future down payment. Typically the equity in a Rent to Own home will grow five times faster than regular financing.
Its *Your* Home!
When you rent its not your home. With Rent to Own its your home (Sounds pretty good doesn't it!). So you can do whatever home improvements you'd like.
Minimal Maintenance Costs
You will have to pay for small repairs, but large repairs such as roof repairs and such the seller of the Rent to Own home is responsible for. With a traditional mortgage you would be responsible for the entire cost.
Improve Your Credit While You Live
While you live in your Rent to Own home you get to improve your credit. This is a key part of the model and we cover this in our application process. The sooner you start on this the better. Now why is this important you might ask? Well, when you buy a Rent to Own home the entire point is that you will have time to fix your credit. So from the time you sign the Rent to Own contract to when you get to purchase the home outright you have time to fix your credit. This will mean thousands in savings compared to if you had purchased a traditional home outright with your current bad credit.