Curious to know more about rent to own houses in Surprise?
Keep reading to find out how they work and to know whether rent to own is right for you
Most people think of renting a house or owning a house… but few realize there is an amazing “middle ground” – rent to own houses in Surprise – that gives you the best of both worlds. In this blog post, you’ll read about what it means to rent-to-own and how it works.
Renting: When you rent in Surprise or anywhere in Phoenix, you pay the landlord for a place to live. As long as your rent is paid, you have a place to live. You own no equity in the home you are living in and all the rent payment goes to the landlord.
Owning: When you own in Surprise or anywhere in Phoenix, you take out a mortgage from the bank and they give the money to the seller. You pay the bank back for their loan. Meanwhile, your equity (the value of the property) grows.
Both of these have advantages and disadvantages. But right in the middle is a great way for aspiring homeowners to get into the house of their dreams – through rent to own houses in Surprise. Here’s how it works…
First, you find someone who does rent to own houses in Surprise.
Second, you make an agreement with them to rent their house for a period of time (the length of time is determined between you and the owner, and it might be a few months or a few years). The length of time can also be determined by what items you are working on to be able to ultimately buy the home outright. This may be improving your credit score and/or saving more of a down payment.
Third, you rent until the rental period is complete and then you purchase the house for an amount you and the seller agree upon.
Rent to own work in [market city] when…
Rent-to-own might work if qualifying for a mortgage isn’t likely for you right now, but you still wan to own a home and begin building equity. It also might be a great solution for you if you simply need time to assess your financial situation or employment stability.
Prospective buyers in a rent-to-own agreement are often attracted to the idea of building equity in a home they might not otherwise be able to afford to purchase. For the buyer, the benefits of rent to own are property appreciation, time, mortgage rates and flexibility. Rent to own gives buyers the opportunity to increase their credit score and savings to be able to qualify for a better mortgage rate in the future. Buyers also have the opportunity to live in the home and neighborhood before buying.
- Renting to own allows you to get into a permanent home sooner than renting the traditional way (renting one place and then buying a different place).
- The period of the rental also gives you time to fix up your credit if it’s not in perfect shape, so that you’ll have good credit by the time you need to get a mortgage.
- And, renting to own sometimes offers alternatives to saving up a huge down payment (for example, some of your rental payments may go toward a down payment so you’ll have less to pay when it comes time to pay a down payment – this varies, though, between each rent to own houses in Surprise).
Rent to own houses in Surprise is a great way to find a permanent place to live for the long-term, build up equity in that property and to get into a house without the high cost of down payments… even if your credit isn’t perfect right now.