Things You Need to Know About Rent to Own Houses

Rent-to-own Georgia houses can sound like a good deal, especially for those people who wants to own a house but can’t afford it yet. Although it’s very much similar to leasing, it gives the buyer the chance to buy the house on his own accord. A portion of his monthly rent is credited to the closing costs or the sales price of the property. They also have the chance to purchase the property by adding an additional non-refundable payment of about three percent at the end of their lease. According to some brokers in Augusta, several people with little to no savings for a down payment are given a chance to finally get their own house. This is even appealing to those people with bad credit who don’t qualify for traditional mortgages yet.

Rent to own houses also gives the home buyers a chance to experience the neighborhood before buying the property itself. According to some real estate brokers in Georgia, rent-to-own houses lets you get into a house without actually signing for a thirty year mortgage. However, alongside these great perks are some potential drawbacks that make rent-to-own houses a little bit more complicated than renting.

Since the monthly rent is credited to the sales price of the house, the tenant’s payment is higher than an average rent in the market until the end of his lease. The extra payment is non-refundable which means that any extra payment will not be returned back to the tenant. He is may also be held responsible for paying any “back taxes” that the current owner may have acquired.

Although this may seem like a complex process, most people still choose to get a rent-to-own house. It’s because of its flexibility to own a house without worrying about the initial down payment. However, some people may find themselves in a financial trap because they didn’t know what they got themselves into. It would be best to know how the rent- to-own process goes before signing for one.

Rent- to-own process is a great option for people who doesn’t have the means to pay the initial cost to get a mortgage yet. However, some experts would advise that instead of doing rent-to-own, find other options to acquire a house instead. There are several low down payment options available today, not to mention the other government home loan programs that assist people with bad credit or those who are on the low-income budget and have very little savings. You may try to rent for a while, then put the difference or your extra money in a savings account until you can afford to pay the initial 20 percent down payment. It’s always better to have a possible option to buy a house when you have the means to do it.