Rent to Own Homes: When Does it Make Sense?
Among the top definitions of the American Dream is the aspiration of home ownership. In nearly all circumstances, procuring financing for a home proves to be the path to ownership. But how about hopeful home owners where financing is not easily attainable? What if finances and/or credit are simply not available?
Consider Before Renting to Own
It can be said that a rent to own home ownership arrangement is not the most suitable option for all homeowners. When favorable lending terms are available, it's most sensible to bypass the rent to own option.
Scenarios When Renting to Own is Most Appropriate
But how about those not able to obtain favorable financing terms? Lease to own home programs are exceptional in their ability to provide a buffer period for prospective home owners to build a buffer period in order to build up their credit and/or finances. Furthermore, rent to own programs allow a home leaser to place equity into their homes while renting.
Who else may benefit from an RTO home arrangement? How about those who may need a flexible living arrangement? There are circumstances where one may take up work in a new city, yet not be entirely sure whether the move is permanent. A lease to own arrangement can be optimal for those wishing to wait out such a decision.
Rent to own homes most certainly holds benefits for countless individuals. However, it's important to evaluate your personal situation before entering any such agreement. Just as in any purchasing decision (and most certainly the case with real estate) due diligence and analysis of your personal situation goes an incredibly far way.