house by owner
house by owner
If you regularly read this article thenyou probably have heard of me on more than one occasion the rental property orlease with option of a house. Well I have had several people ask me why wouldanyone rent to own house. They argued that should only continue to rent andsave your money and get a regular loan. Well, I want to discuss why the time isnow more than ever to see the rent to own a house.
When a rent to own is done correctly, canbe beneficial for the seller and the buyer. When done correctly, creates awinning situation for everyone involved. When a rent to own is not doneproperly, creates headaches for the seller and many times even more headachesfor the buyer. An appropriate rent to-own will give the seller and the buyer afixed purchase price. So the seller will know exactly how much they receive fortheir house and the buyer knows how much to pay in the end the house.
In this market, which is great because itcan block a buyer at a good price, while they are unable or unwilling to obtainfinancing and they can wait until the market improves to get mortgagefinancing. Another advantage of rent-to-own is the down payment.
Traditional mortgages are now asking fora 10-20% down payment to buy a house. In an appropriate income-to-Buy you canget a down payment as low as 3%, but generally around 5%. That is still verylow and much easier to swallow then the banks 10 to 20%. A final advantage isthat a buyer for an appropriate income-to-own allows a buyer to have less thanperfect credit. So for those who have defects of credit you can still get yourdream house with a down payment and low prices on the market today.
Now, for a seller, besides protecting itsprice also has the advantage of selling your house or get rid of that mortgagepayment very quickly. This is an ideal situation for someone who moved to a newhouse, but was unable to sell the old house.
Finally, for a seller, rent-to-own isbetter than an adequate rent for a rent-to-own is hands free. You do not makerepairs, you do not get calls from tenants at night, and you have someone tohold your investment. Its really a win-win.
Now, in this article I mentioned anappropriate income-to-own. If you are unsure of how to prepare an appropriateincome-to-own or know how to get an adequate income-to-own, then call ouroffice today to see how our appropriate income-to-own can help.