Rent-to-own homes involve agreements between homeowners and tenants who have the intention to purchase the property. Homeowners may consider lease-to-own arrangements when they are nearing retirement or have plans to sell the house in the near future. 

Rent-to-own programs for first-time homebuyers offer a convenient pathway to transition from being a renter to becoming a proud homeowner.

Rent-to-Own Options Can Turn Your Rent Payment Into a Down Payment

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Rent-to-own mortgage lenders do not directly handle the terms between you and the current property owner. However, you can explore reputable rent-to-own home companies online and even prequalify for your desired home.

A rent-to-own mortgage or contract typically covers the following:

  • The duration of the lease, typically spanning three years.
  • The rental amount and the portion that contributes towards the purchase price.
  • Whether the purchase price is determined upfront or at the end of the lease term.
  • The responsibilities for home maintenance and associated fees, such as yard upkeep and property taxes.

While you may not find an extensive list of rent-to-own homes on platforms like Zillow, which primarily focus on rentals and sales, you can conduct an online search for “rent-to-own homes near me” to discover third-party companies that connect property owners with potential buyers.

For example, with companies like Divvy, approximately 10 to 25% of your monthly payment is credited towards your future mortgage. The best part is that you have the flexibility to buy the house at any point during the three-year lease period or choose to back out of the agreement and still get back the money you invested into purchasing the home. 

Most rent-to-own home listings operate on a similar principle, where a portion of your monthly rent contributes to the eventual purchase of the home. First-time buyer rent-to-own programs are particularly advantageous, especially for those without home equity. 

Make sure to check out all the different types of rent-to-own programs available to find the one that can help you purchase the home you’re looking for.

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By Admin