RENT TO OWN
YOUR RENT-TO-OWN RESOURCE
We here at Own Your Home want to see you succeed in your home ownership goals! You’re closer to owning a home than you might think!
Who participates in Rent to Own programs?
- Home buyers who are emotionally ready to commit to a home but not financially ready. Older or younger, a new couple or those celebrating several years together, we’ve all been in situations where our bank accounts don’t match what we’re ready for in life. Rent-to-Options can be ideal for good people who find themselves in these kinds of situations.
- Those with Bad Credit. Nothing will halt the home buying process faster than discovering your credit score is too low to be approved. Rent-to-Own can be a viable option for those who need to raise their score without losing out on the house they know they want. We’ve got a vast network of lenders in our exclusive MortgageMatch™ Lender Network that can work with credit scores all the way down to 580, and sometimes even lower!
Look through our free information resource using the links below, or click ‘Get Started’ to have an Own Your Home loan facilitator give you a call today to discuss your ownership goals!
What is Rent-To-Own?
One of the few times the name is practically self-explanatory. Also called a, ‘lease option,’ Rent-to-Own is an agreement between the owner of a home and the person(s) who is looking to purchase. The owner of the property extends the right to purchase the property at a future date. The potential buyer lives in the property until the lease option expires.
Rent-to-Own is ideal for prospective homebuyers who find themselves in the position of wanting to buy their first home but aren’t quite financially prepared.
Sometimes the issue is a lack of down payment, perhaps too much debt, or there’s a lingering ding on their credit report. Sometimes you have to raise your credit score or save more money before getting into a home. In such a case, a rent-to-own or lease-to-own arrangement can sometimes be a good solution.
Rent-to-own agreements vary in their exact terms. Generally, the property owners and renters sign a contract in which the renter agrees to rent the property for a specified time, typically one to three years. During that time, the renter(s) usually pay an above-market rent, with the excess rent credited toward a down payment when the contract ends. The contract normally sets a price for the home at the end of the lease.
Rent-to-own contracts offer prospective buyers an opportunity to settle into a home they want to purchase while they continue to save for a down payment, improve their credit score, or wait for a negative factor on their credit report – such as a foreclosure or a collection – to fall off or be taken off by experts in credit repair.
Owners often agree to a rent-to-own contract if their home isn’t selling fast enough but they’re motivated to move out.