Rent-to-own homes are a great way to get into the home buying process. Rent-to-own homes are an option for first time home buyers who don’t have enough money to get approved for a mortgage loan or for those that would rather not take out a mortgage.
What are Rent-to-Own Homes
If you’ve ever rented an apartment or house, you know that you pay rent every month. The difference with a rent-to-own agreement is that instead of paying rent, you will be making monthly payments on the house until it’s yours.
Under a typical rent-to-own agreement, you will make monthly payments on your home over a period of time (usually 3 to 7 years). At the end of this period, if all goes well and there are no major issues with your home, you will own it outright.
Are Rent-to-Own Homes For You
Rent-to-own homes are not for everyone but they can be a good option if:
You want to buy but don’t have enough money saved up for down payment and closing costs
You need more time to save up for down payment and closing costs
You plan on staying in an area for at least 3 years (or longer)
How Do You Find Rent-to-Own Homes In Fayetteville NC and Other Areas?
Rent-to-own homes are not as common as traditional rentals or sales, but there are plenty of them out there. You can find them online by searching for “rent-to-own properties near me” or “Fayetteville NC rent to own homes“. You should also check with local real estate agents who specialize in buying and selling houses.
Rent-to-own homes are also listed on Craigslist and other websites like Zillow and Trulia. In fact, rent-to-own homes are becoming more common as a way for sellers to get more money out of their properties.
Rent-to-own homes are often listed as “lease-option” or “contract for deed” properties. These terms have a specific meaning in the real estate world, so be sure you know what they mean before you get involved.
If you decide to rent-to-own a home, make sure the contract spells out exactly what the terms of your agreement are. You should find out how much you’ll be paying each month, what happens when the lease expires (typically after three years), and whether or not there are any fees associated with selling at that time.
If the seller has agreed to sell you the home at a later date, make sure you have an option period. This is typically a time frame within which both parties (you and the seller) must agree on terms.
Renting-to-own a home can be a great way to get into your own property without having to pay the full price upfront. However, make sure you read up on what rent-to-own means and make sure it’s something you really want before signing any contracts.