Many Americans are facing unmanageable credit problems that make it virtually impossible to purchase a home. Even worse, the foreclosure rates among home owners continue to trouble real estate markets nationwide. For many, the dream of owning a home has faded long ago.
But there is hope.
Lease-to-Own homes or Rent-to Own properties are a wonderful alternative for people who would like to purchase a home right now but may need a little time to acquire a down payment or build up their credit rating
How does rent to own homes work?
First, a home is made available via a standard lease with an option to purchase that home at a specified price over a specified time period. The most common specified amount of time is typically 2-5 years. During this time, the renter is allowed to live in the property with a portion of the monthly lease being applied towards a down payment for the property. If by the end of the time period a twenty percent down payment is achieved the odds of them being approved for a home loan greatly improve. This is good new for the renter if he/she works hard at making that down payment and making serious strides in improving their credit scores.
There are many savvy real estate investors that are willing to take the risk on those who have had credit problems but are attempting to get their lives back in order. For this reason investors that offer lease to own real estate to those with less than spectacular credit are often viewed as saviors since they are taking a risk that others are unwilling to take on a person.
To Find Rent to Own properties in your area, contact your real estate agent or just head over to RentToOwnAds.com