Jump Start Your Home Ownership With Rent to Own Homes

By Tim Hong
What is a rent to own home?

• A rent to own home is your dream house which you rent for a specified period of time and at the end, you have the option of buying the home.
• During the time you are renting, a percentage of your monthly installments are credited to your final price of the property.
• At the beginning of the program, it is necessary to make a preliminary upfront option payment which allows one to purchase the home at the end of the program. This is traditionally less than what bank requires.
• You can move in the home right away and think of it as your own.

Who's the best candidate for a rent to own home?

• A rent to own home is for those those who cannot get lending the traditional way from your bank or perhaps a mortgage broker.
• They make good income, however they either have hit a bump in their credit or they do not have enough of a downpayment.
• They view the importance of owning their own home.

All rent to own programs typically have a similar concept. The difference is that often you can find three main variables:

1) The upfront payment option needed
2) The number of credits each month
3) The kind of home

Understanding each one and how it affects you throughout the program is essential, otherwise you may be exploited.

The upfront option payment is normally between 2-4% of the current asking price of the house. Typical monthly credits vary from 10%-20% of the actual monthly installments. The house itself, should be within a good area with good potential for appreciation. It should be well maintained with recent upgrades to windows, roofing and furnaces.

You need to also understand what other payment responsibilities you may have. Typical rent to own homes in addition have the rent to own buyer responsible for repairs within a specific amount, maintenance fess (if in a condo or perhaps a townhouse), as well as contents insurance to insure personal belongings. The property tax and property insurance are usually taken care of by the landlord.

During the program, make sure you are getting assistance in determining if you qualify for the home towards the end of the program. If you fail to qualify, rent to own options normally do not refund any of the money you have already paid. The landlord may revise the program, but be aware of the various scenarios that may happen at the end with the program.

As with any major step, doing your due diligence is a critical part. Determine what you're entering into now and how it will affect you in the future.

A rent to own home could be your method towards owning a home.

Tim provides a rent to own program for future home owners. He focuses in Southwestern Ontario, Canada.
See how the program may be perfect for you, http://www.rent2ownhomesolutions.ca.

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