Can I find a rent-to-own property? |

Can I find a rent-to-own property?

Can I find a rent-to-own property?

Can you find a needle in a haystack?  Of course you can, but the probability isn’t very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own.

 

When an owner is offering “rent-to-own” as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering.

If you’re able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.

I own a home, should I buy another before selling my current home?

There is truly no concrete “correct” answer to this question.  There are pro’s and con’s to buying a home before selling your current home and the same can be said about selling your current home before buying another.