Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Lease-To-Own Questions And Answers
1. In order to appreciate rent to own as an option you should
have a basic understanding of how it all works, so let's
answer some of the more frequently asked questions that
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3. A: This lease to own option basically means that a house
for rent by owner is offered to a renter that will pay a
monthly premium in order to purchase the house at the
end of the lease's term. The premium is paid on top of
the market rent, and the contract usually lasts between 1
and 5 years. At the end of the lease, the renter has the
option to buy the home, and all the premiums that they
paid go towards the equity of their home.
5. A: An obvious benefit is that the seller will have someone
occupying the premises thereby ensuring an income
generated from the property. The responsibility of
maintaining the property is the occupant's, and if the
buyer chooses not to purchase, the seller might actually
make some extra money from the arrangement.
6. Q: What are the benefits of this lease option for buyers?
7. A: The main benefit is that buyers that can't afford to
purchase a home immediately can move into that home
and have the home's option, but without needing to pay
a down payment or buy the house immediately. This is
good for those with poor credit score, those who can't
get loan approval, or those that are not able to buy a
home immediately.
8. Families with a limited budget can improve or remedy
their poor credit score by utilizing this option, plus saving
up until such time as they are approved for a loan and are
then a position to make a down payment. For many
families, this is the way that they are able to own their
dream home while at the same time living in it even
though they have yet to actually buy it.
10. A: There is a risk that the buyer will not purchase the
home, though this is not usually the case. It could be that
they are not approved for the loan, or they haven't been
able to repair their credit score. The owner of the home
will be able to keep the premium option and the rent
premiums, meaning that the renter/buyer would lose this
money. There is a bit of risk for both parties.