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.
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