How to Rent to Own Houses

Are you interested in moving out of your apartment and do rent to own houses instead? Rent to own houses are very popular for people who may not qualify for a traditional mortgage right now but may be able to in the future. The way to rent to own houses is by giving the owner of a house a down payment and then paying a slightly higher rent every month. A portion of the rent would go towards the dwindling the final purchase price of the house.

Difficulty: Easy

Instructions

1. Look for rent to own houses online, in your local newspaper, and in house for sale magazines. Even if the owner is not selling his house by rent to own, you may be able to bargain with them to do rent to own.

2. Bargain with the owner on the price of the rent to own home. Try to get a lower down payment, a lower rent, or a lower final price. You can also try to bargain for the time limit in which you have to buy the house. Don’t limit yourself to bargaining for one thing only.

3. Get a mortgage for the home once your time limit to buy the house is up. The purpose of renting a home to own is so that you can build your credit up to get a lower rate on your mortgage loan.

Tips & Warnings

• Rent to own houses is a good way to get a feel for home ownership. You are not obligated to buy the house in the end, but if you don’t you’ll forfeit all the money you’ve put into it.

[MyJB]

on 5/29/2009 Good advice. Thanks.