Rent to Own Home Programs Introduction

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Rent to Own Home Programs Introduction

Posted On : Jan-23-2012 | seen (640) times | Article Word Count : 575 |

Many people who are unable to secure the financing required to purchase a home instead choose a rent to own home program. These programs allow them to make set monthly payments, which cover rent and a portion of their eventual down payment for purchasing the property. Although they involve certain risks, rent to own programs can be a good choice for first time homeowners.

Because there are a range of benefits to owning a home, it is the goal of many renters to start building equity in their own place rather than "throwing away" money by paying to live in someone else's. At the same time, many prospective new homebuyers run have some trouble reaching this goal. This could be for a variety of reasons, such as having less-than desirable credit, or not being able to come up with enough money for a down payment.

A number of people who are unable to purchase a home at present will choose a rent to own home program, which is also known as a lease to own program. In this kind of arrangement, a certain rental period is agreed upon where the renter makes a monthly payment to the owner. Part of this payment covers rent, but the other part is for a down payment.

Contracts for rent to own home programs also specify the selling price of the house. At the end of the rental period, the renter has the option, but is not required, to buy the house at the agreed upon price. The owner, on the other hand, must sell the house to the renter for the agreed upon price at the end of the rental period.

The owner can benefit from this arrangement in a few ways. First, many owners choose rent to own home programs because they are having trouble selling their property. Having secured a renter usually means they are able to cover their monthly mortgage payments. Second, they are also accruing payments that go towards an eventual down payment to purchase the house. Because the renter has already started to put money into buying the house, they are more likely to do so. In addition, if the renter opts not to purchase the house at the end of the rental period, the owner keeps the accrued funds that would go towards a down payment.

The renter can also benefit from this arrangement. Many renters choose rent to own home programs because they presently do not have enough funds for a down payment or because they have less-than-desirable credit. The idea is that, over a period of one to three years, a renter can improve their credit and save money in order to purchase a home, while locking in the sale price and living in the home in the mean time. At the same time, the renter should have a lawyer look over the contract to ensure it is fair and they can live up to its terms.

Because the seller must sell the home at the end of the rental period for the agreed upon price, problems often arise when the value of the property accrues and another prospective buyer offers the owner a larger sum of money. Renters should be wary of owners who might try to evict them in order to sell the house to someone else. This is especially important to watch out for because contracts usually specify that the owners retain the funds paid towards a down payment in the event of an eviction.

Rent to own home programs can provide an advantage for some first-time homebuyers as well as homeowners struggling to sell their existing home. At the same time, these same programs can pose a number of hidden dangers that prospective buyers and sellers both need to evaluate before signing the contract.

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<h1>Rent to Own Home Programs Introduction</h1> Author: <a href='http://www.articleseen.com/profile_Nick DAlleva.aspx'>Nick DAlleva</a> Because there are a range of benefits to owning a home, it is the goal of many renters to start building equity in their own place rather than "throwing away" money by paying to live in someone else's. At the same time, many prospective new homebuyers run have some trouble reaching this goal. This could be for a variety of reasons, such as having less-than desirable credit, or not being able to come up with enough money for a down payment.

A number of people who are unable to purchase a home at present will choose a rent to own home program, which is also known as a lease to own program. In this kind of arrangement, a certain rental period is agreed upon where the renter makes a monthly payment to the owner. Part of this payment covers rent, but the other part is for a down payment.

Contracts for rent to own home programs also specify the selling price of the house. At the end of the rental period, the renter has the option, but is not required, to buy the house at the agreed upon price. The owner, on the other hand, must sell the house to the renter for the agreed upon price at the end of the rental period.

The owner can benefit from this arrangement in a few ways. First, many owners choose rent to own home programs because they are having trouble selling their property. Having secured a renter usually means they are able to cover their monthly mortgage payments. Second, they are also accruing payments that go towards an eventual down payment to purchase the house. Because the renter has already started to put money into buying the house, they are more likely to do so. In addition, if the renter opts not to purchase the house at the end of the rental period, the owner keeps the accrued funds that would go towards a down payment.

The renter can also benefit from this arrangement. Many renters choose rent to own home programs because they presently do not have enough funds for a down payment or because they have less-than-desirable credit. The idea is that, over a period of one to three years, a renter can improve their credit and save money in order to purchase a home, while locking in the sale price and living in the home in the mean time. At the same time, the renter should have a lawyer look over the contract to ensure it is fair and they can live up to its terms.

Because the seller must sell the home at the end of the rental period for the agreed upon price, problems often arise when the value of the property accrues and another prospective buyer offers the owner a larger sum of money. Renters should be wary of owners who might try to evict them in order to sell the house to someone else. This is especially important to watch out for because contracts usually specify that the owners retain the funds paid towards a down payment in the event of an eviction.

Rent to own home programs can provide an advantage for some first-time homebuyers as well as homeowners struggling to sell their existing home. At the same time, these same programs can pose a number of hidden dangers that prospective buyers and sellers both need to evaluate before signing the contract.About the Author: Celli &amp; Associates have been pacticing <a rel="nofollow" href="http://www.realestateattorneypa.com">Pennsylvania real estate attorneys</a> for over 20 years. They are the best <a rel="nofollow" href="http://www.realestateattorneypa.com/philadelphia.html">real estate attorneys in Philadelphia</a> and throughout the region. To learn more about the firm and their real estate <a rel="nofollow" href="http://www.realestateattorneypa.com/services.html">legal services</a>, please call 610-525-5380. Article Source: <a href='http://www.articleseen.com/Article_Rent-to-Own-Home-Programs-Introduction_137985.aspx'> http://www.articleseen.com/Article_Rent to Own Home Programs Introduction_137985.aspx</a>

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Celli & Associates have been pacticing Pennsylvania real estate attorneys for over 20 years. They are the best real estate attorneys in Philadelphia and throughout the region. To learn more about the firm and their real estate legal services, please call 610-525-5380.

Keywords : rent to own, down payment, mortgage, real estate finance, lease or buy, home ownership, housing, renting,

Category : Finance : Real Estate

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