Rent to Own - The Only Way To Buy Your Home!


By James A. Gage

If you are a renter who is tired of paying someone else's mortgage and want to own your own home, there are many ways to buy a real estate; one of them is Rent to Own aka Lease Option, which is a means of acquiring ownership over time without taking on debt.

The renter agrees to lease the home for a pre-determined time usually from one to three years. There may be an up-front consideration fee. The seller allows the buyer to lock in a monthly price for the property till it is paid off. This is a way to settle on something that is right for you even if you are not in the position to make an immediate purchase. A lease purchase can make your rent money work for you instead of making your landlord rich.

Similar to a rent to own for a TV you can have a rent to own for a piece of real estate. In this case most sellers that are willing to do this (and there is not many) will want a non refundable deposit on the property, then you pay the landlord rent until you can purchase the property. This is similar to a lease option as well, except all you pay is rent. The deposit is much less than an option and you do not pay the taxes or the mortgage, since you are still a renter. The benefit of doing this is you get into your home with the intention of buying the house at a later date. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run.

This type of agreement works well with those who are new to the housing market or have made a job transition. It also is positive for anyone who needs to strengthen his/her credit or pay off an obligation to qualify for a home purchase. Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-40%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. The best part about this is that with a rent to own home, you get to live in the home you want to buy while you work on fixing your credit up.

As you can see there are a lot of benefits to you, the buyer. In addition, here are a few more benefits:

         A portion of your rent payment goes towards the purchase of the property. No more throwing away a rent payment each month.

         Check out the neighborhood and home before you purchase. Donít get stuck living next door to the Adams Family !

         Have all the benefits of ownership now!

This creative process of how to buy a rent to own house is becoming more and more popular because it creates a "Win - Win" scenario. The Buyer is able to get into a home with limited money and credit, and the Seller is able to get a fair price for their home and get it sold more quickly.




"You are who you are and where you are because of what you have put into your mind."

For more information or pricing please do not hesitate to call or e-mail. I can be reached at (508) 595-9567.