A rent-to-own home purchase is a rental agreement with an option to purchase the property at a specified price in the future.
Wildwood Crest, NJ $75,000
Clark, NJ $389,999
Paramus, NJ $150,000
Pemberton, NJ $89,000
Princeton, NJ $479,900
New Brunswick, NJ $129,900
Why Renting-to-Own May Be a Good Idea For You
Are you considering getting into a RTO or 'buyer option' property? It can be a great option if you are unable to currently obtain full financing for a RTO property. If you have tried to go through the mortgage approval process lately, you know how difficult it can be to get qualified for a mortgage in this economy.
Credit requirements are tightening, down payments are going up, and house values are going down. This extremely volatile housing market has caused new trends in the industry, such as the RTO boom of today. This is why flocks of buyers are choosing to enter into a contract to rent the home with a 'buy option' that allows for the house to be purchased at a later date.
If you are someone who cannot get approved for a traditional mortgage because you do not have a large enough down payment, or you do not have the credit required, a rent-to-own home may be a good option for you to consider because it gives you a specific period of time to improve your credit worthiness and increase your likelihood of being approved for a mortgage when the buy option is coming due.
There are so many people looking for rent-to-own homes, the market has increased supply to keep up with demand, which means more properties for you to choose from.
But there are so many other potential RTO buyers out there today, you may find yourself in competition with another person for the house that you want. The person who is most qualified, or seen as the most likely to make payments on time and be qualified to purchase the house by the landlord/seller will be the one who is given preference to get the property.
Many regular rental landlords are also open to RTO contracts because many times rent-to-own tenants are more dependable than a traditional renter. They also present a continual stream of revenue that can be long-term.
If you find a house that you want, but is only for rent – you can approach the landlord and offer to purchase the house via a rent-to-own contract. Often times the landlord will be willing to give you the option to purchase the home if you are willing to commit to living in the house for a period of time – as specified in the RTO contract.
Also, if you have been renting a house for awhile, it can be possible to approach your current landlord to possibly enter into a RTO contract, so that your rent payments would be going towards your mortgage balance.
Current landlords love the option to be able to have a current tenant either stay renting the house or exercise the option to buy the house.