Information About Rent to Own Homes In Philadelphia
Information About Rent to Own Homes In Philadelphia. If you need information about rent to own homes in Philadelphia, look no further. This article will guide you through the process.
There generally are two types of people who can benefit from a lease to own (also known as a rent to own) agreement:
- People who can’t afford a down payment or whose credit isn’t good enough to get a mortgage to buy a home
- And people who have bought a new home buy are having trouble finding a qualified buyer to purchase their old home
Information about lease to own homes in Philadelphia
A lease to own agreement is like renting a home, but with a twist. Like a lease, it’s a contract that binds the signee to pay a certain amount in rent for an established period of time.
But a lease to own agreement has other provisions. It usually gives the signee the option to buy the house for an established price at the end of the lease agreement. This gives the signee time to save for a down payment and establish their credit so they can get approved for a mortgage.
It also sometimes allocates a specific amount of the rent paid each month that can be applied to the purchase price of the home at the end of the lease.
For example, you could sign a three-year lease to own agreement to rent a home worth $100,000 for $1,250/month, with 20% of the monthly rent going toward the home’s purchase. That way, at the end of the three-year lease, you would have $18,000 you could put toward the house, which is nearly enough for a 20% cash down payment. (Note: all lease to own agreements are different and this is only one example). Information About Rent To Own Homes In Philadelphia. Keep reading…
Contact us today at (215) 346-5915 to find out more about our terms, and additional information about rent to own homes in Philadelphia.
Information about rent to own homes in Philadelphia – the risks
Depending on the terms of the contract, the money that is set aside toward the purchase of the home may not be refundable if you decide not to exercise the option to buy when the lease expires – either because you don’t want to or you can’t because you don’t meet the financial requirements for a mortgage.
Typically, in a lease to own agreement with this type of setup, the rent will be slightly higher than the going rate for a comparable home in the same market. So if you don’t exercise the option to buy, you could be out that money.
There are fewer risks, however, for the homeowner who has bought a new home and can’t sell their old home. A lease to own contract is the next best thing to selling the house: You have a rental income that you can apply toward your mortgage and it’s highly likely that you will sell your home before or when the lease expires.
Is it worth it?
Information About Rent To Own Homes In Philadelphia. Whether a lease to own agreement is worthwhile depends on the specific situation. Both parties need to be very clear about the terms of the contact they sign. But if a good deal is struck, it can benefit both sides.
Homeowners who already bought a new house won’t have to worry about paying two mortgages at once. And buyers who perhaps aren’t yet ready financially to get a mortgage can live in the home they want while working toward their financial goals.
If you are interested in learning more information about rent to own homes in Philadelphia, call us at (215) 346-5915 or fill out the form to get more information sent to you right away.
Here’s the fastest way to find homes for lease to own in Philadelphia…
By far the fastest way to find homes for lease to own in Philadelphia, South Jersey, is to contact us without delay! We have years of experience in this field and can help you easily find homes for lease to own in Philadelphia South Jersey in no time.
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