Atlanta Rent To Own And Lease Purchase Homes

Rent to own homes, lease purchase homes, and many other owner financed arrangements are becoming more and more popular with slow home sales and tight credit. If you have any of the following it may be worth looking in to.

• No Credit History
• New Job
• Self Employed
• Commission Income

• Blemished Credit
• Own Multiple Homes
• Down Payment Too High
• Uncertain About Location

Because of the changes in the housing market, Rent To Own, or Lease Purchase, have become a very popular options for both home buyers and sellers. Before signing the dotted line, make sure you now the facts. This option is not for everyone, but it just may be a way to get you into the home of your dreams.

Rent To Own And Lease Purchase Homes In Atlanta Area

Because rent to own is a realtively new option of buying or even renting a home, locating one in your area could be a little more difficult. It is important that you do your research. Finding someone who has dealt with rent to own or an experienced real estate agent can help you find the right home. The agreement details and your buyer's fincnial position are both high priority items that you should be comfortable with.

What is a Rent To Own Home?

A Rent To Own Home may also be referred to as a Lease Purchase, Lease With Option To Purchase or Rent To Buy. There is no standard agreement for this option, but in most contracts there is a lease period and includes or have a separate agreement for the option to purchase the home at the end of the lease.

Also included in the agreement are certain conditions that the tenant must meet in order to become the owner of the home. These conditions differ based on how the buyer and seller wish to structure the contract but usually require the tenant/buyer to pay an initial Option Fee and a monthly lease payment for a specified period of time.

Rent To Own Example

Home Price $200,000

48 Month Lease

3% Option Fee = $6,000

The option fee is paid at the beginning of the lease. This fee allows the buyer the option to purchase the home in the time frame specified in the lease. This option is usually at the end of the lease period. This fee is usually non-refundable and does not constitute as a down payment, deposit, or a credit.

Monthly rent = $1,800

The amount the tenant/buyer pays on a monthly basis to live in the home during the lease period. This amount may change based on the current market conditions in the area you are buying.

Monthly Rental Credit = $500

This credit is accumulated over the leasing period and is paid toward the purchase price of the home as a down payment. At the end of a 48 month lease the accumulated rental credit would be $24,000. The monthly credit should be negotiated at the time the initial agreement.

Home Purchase

When the lease term expires, the purchaser must secure financing for the purchase price less the monthly rental credits.

$200,000 - $24,000 = $176,000

Advantages Of A Rent To Own Or Lease Purchase Home

• Immediate Occupancy
• Easy Qualification
• Accumulated Down Payment
• Cleaning Up Your Credit
• "Try Before You Buy"
• Build Equity

The Rent To Own or Lease Purchase option provides you with many benefits, but the main thing to remember is that this is a great way to achieve the goal of home ownership and build equity in an unconventional method. It is important to compare this option with the conventional mortgage amortization schedule to ensure you are building equity at a good rate.

Questions or Comments About Atlanta Rent To Own Home.com ? Email Us info@AtlantaRentToOwnHome.com