5 Reasons to Go With Rent to Own Homes in MN

The conventional way of buying a home is to simply save up enough money for the down payment, apply for a home loan to purchase the home and buy the home. Even though there are a lot of people using this method to purchase their dream homes, the number of people employing other techniques is consistently rising.

For instance, since the recent global economic downturn, a lot of people are looking for rent to own homes in MN. The reason for this is simply the wide variety of benefits that buying homes in this manner affords to the buyers. If you are also planning to buy a home and are assessing various ways of doing so then here are five reasons why you should go for rent to own homes in MN.

A Balanced and Fair Price

It is important to deal with the market first. Minnesota’s real estate industry, unlike many other regions in the country, has already achieved parity between sellers and buyers.

What this means is that property rates in Minnesota are very balanced and fair for everyone involved. In effect, when you choose the rent to own home option in Minnesota, you will benefit from the stability and solidity of the market itself.

Fixed Purchase Price

The biggest benefit of choosing to go for rent to own homes in MN is that you would get to buy the property at a price that is predetermined. This precludes the effects that market dynamics can have on your efforts to get a home for yourself.

Effectively, when the prices of real estate properties do rise, as they always have a tendency to after a recessionary period, you would be able to buy your property at affordable rates.

Financial Freedom

Knowing how much you would have to pay in the future can give you a certain sense of financial freedom. You can set aside a logically chosen amount of money every month to be able to buy your property when the rental period is complete.

Financial freedom is also a consequence of the fact that the majority of rent to own home contracts tend to treat the monthly rentals as a form of down payment when the purchase is made. With no down payment to worry about, you can even choose to finance the home freely later on.

Maintenance Costs

As you would be staying in the house that you plan to purchase at a later date, you would get to practically evaluate the home in terms of its condition. If you have a rent to own home contract where the responsibility of repairs and maintenance is the current owner’s then you can have any flaws you find repaired without your pocket getting affected.

Mistakes to Avoid In Choosing Rent to Own Homes in GA

You and your finances could benefit greatly by choosing to buy a home in Georgia. The reason for this is simply that the current real estate pricing trends in Georgia show that property rates are on the up. This means that you can buy a property at its current price and sell it off at a higher price later.

However, it is possible that you are unable to do this because your finances limit you. Fortunately, even if you are battling with poor liquidity or even bad credit scores, you can still acquire a home in Georgia by choosing to buy rent to own homes in GA.

Rent to own homes in Atlanta or any other part of Georgia are easy to get because they would allow you to live in the home, pay rent which will combine to be your down payment later and get discounts when your renting period is complete. However, while there are many benefits of buying rent to own homes in GA, there are some dangerous pitfalls as well.

Here are some common mistakes that people make while buying rent to own homes in GA that you can read to prevent yourself from making them as well.

1. Try to manage the whole deal independently:

The biggest mistake you can make while buying rent to own homes in GA is to not seek out expert help for closing the deal. There are various legal concerns pertaining to a rent to own contract, which a layman cannot know about. This is why you should always have a specialist on your side while sorting out such deals.

2. Not ensure the presence of transferable options:

It is possible for you to have the chance to transfer your buyer’s options at the end of your rental period, provided you have it in the contract. Having this clause in the contract would give you the freedom of not choosing to buy the property but still recouping some of the rent you paid the landlord.

3. Take on the responsibility of maintaining the property:

While you are a tenant, it is the responsibility of the landlord to maintain the home. However, some landlords get away with it by simply including a clause in the contract stating that maintenance is the responsibility of the tenant. You should avoid this as maintaining a home can be quite expensive.

4. Assume that the contract is nonnegotiable:

A rent to own contract is not really nonnegotiable, even though many people think like this. When you sit down with the landlord to talk about the contract, make sure you bargain for various things such as grace periods, penalties, transfer clauses and even the final price.

NECAC Program Receives HUD Award

According to a study by the Joint Center for Housing Studies at Harvard, nearly 26 percent of Americans who rent are spending over 50 percent of their gross income on rental dues and utilities. Predictably, low income families feel the squeeze more than any other group of people, and are therefore more likely to face housing challenges, among other difficulties. But, thanks to initiatives such as those run by the North East Community Action Corporation (NECAC), many low income families in the Missouri areas where NECAC operates can now meet their rental obligations and other housing needs promptly.

NECAC is a HUD-selected community action agency that runs a number of housing projects targeting low-income families in Missouri, such as assisting families with rental payment and providing cheap houses for sale under the Section 8 Homeownership Program. Through these programs, NECAC has achieved commendable accomplishments and has been duly recognized through several rewards from HUD.

Recently, NECAC’s rental assistance program received a top rating from HUD for the laudable way it administers the rent assistance program under the Section 8 Housing Program. The rating was awarded under HUD’s Section Eight Management Assessment Program monitoring and evaluation system that is run annually.

NECAC’s rent assistance program runs in various towns and counties in Missouri, including Lincoln, Macon, Marion, Montgomery, Randolph, Shelby, St. Charles, and Warren, among others. In addition to helping HUD meet its community housing objectives, NECAC was recognized for its commitment to help low-income families acquire decent housing and manage their rental dues under HUD homes community programs. The NECAC rental assistance program is a win-win for both tenants and landlords as it ensures both parties are getting value for their money.

For more on this news, read the following article.
To learn more about HUD homes, see this guide to buying HUD homes.

Things to Consider with Rent to Own Properties

Have you heard any horror stories about the condition of rent to own homes lately? This concept has been very limited until the last few years. Some of those potential buyers than entered into this type of agreement are just now coming to the end of its terms. From the location of the house to the asking price, there are quite a few questions that make weighing the options important before taking that step.

Knowing that a landlord-seller might reconsider selling at the end of the agreement period is a risk. Rental-buyers may not qualify for a mortgage after the initial rental period expires. Those are the two most frightening risks of the deal.

You should take a look at the positive feelings of 26-year old Michael DaSilva, who decided to rent to own in NJ. He was uncertain whether to buy a condo or rent an apartment. He found out he could actually pay towards a purchase on a new one-bedroom condo that displays luxury features he enjoys. Each month, half of his rent goes into an escrow account to be used as a down payment. The best part right now is that the price is locked in at a time when housing values are on the rise.

The idea is also available for single family homes. Imagine getting the mansion of your dreams and having time to be certain it is what you want. If the renter decides not to buy, the escrow is forfeited to the owner. Rather than commit to hundreds of thousands of dollars, or even millions, for a home you think you like, rent to own is an opportunity to try it for real.

You can read the full news article here.

Avoiding Potential Problems with Rent to Own Homes in MD

Entering into any financial agreement brings about an inherent amount of risk and, as a result, should be carefully researched beforehand. If you are looking into rent to own homes in MD, you have probably heard about a few problems regarding these types of agreements. While issues do arise with these deals, it is usually because the buyer is careless before entering the agreement, rather than a fatal flaw with the rent to own process. As long as you are aware of what could happen, you can avoid any of these issues in the future.

No Guarantees

A major issue involved with the rent to own process is that you might end up without a home at the end of it. If you do not like the home and choose to walk away at the end of your contract, you do not receive any sort of credit towards another of the rent to own homes in MD. In this situation, it means that you will have ended up paying rent on the home, rather than putting money towards a purchase. As a result, this is not really a risk at all, but is like a trial run in the home. This can save you from purchasing a home that you do not like, which is sure to save you money.

Mortgage

Another potential problem is that if you are unable to secure a mortgage to purchase the home once the rent to own contract has expired, you will lose the home. As a result, make sure that you can come up with this money before looking for rent to own homes in MD. You could also ask the seller if he or she is interested in financing the sale. Either way, you can begin making plans beforehand if you wish to purchase the home. If you cannot come up with the money, you are not losing out on anything because you would have been renting a property anyway.

Contractual Issues

Once you sign the contract with the seller, he or she gives you the option of purchasing the house at the end of the contract, as long as you fulfill your obligations. If you miss a payment, however, the seller might have the right to evict you from the property and keep the money that you have put towards the purchase of the home. Read the contract carefully or have a lawyer look it over before signing it. In doing so, you can save yourself from the having unexpected clauses dropped on you during your contract.

Protect Yourself

As you can see, the major issues that people run into can easily be avoided by taking the necessary precautions. Rent to own homes in MD are a great way to get the property that you have always wanted, even if your current credit rating will not let you receive a mortgage loan.