One very powerful way to begin building equity and financial stability is through home ownership but not everyone has access to conventional bank financing to purchase a home and this can occur for a number of reasons including but not limited to;
- Not a long enough credit history
- Previous foreclosure
- Previous Medical situation
For a number of reasons, your credit score may not be at the level that a typical bank would require to finance a home purchase. There is still opportunity to build equity and avoid paying rent for an apartment by looking at a rent/lease to own situation.
In order to enter into a rent/lease to own situation, you would typically require some form of deposit similar to purchasing a home, this provides some incentive to the current owner of the property to take it off the market and allow you into a purchase “option” with some level of time limit. The financial benefits of doing this type of arrangement is as follows;
- You agree to a purchase price with the current owner that is not subject to inflation. Example would be if you lock in at a purchase price of $100,000, and the home appreciates 3%, you still pay $100,000 for a home currently worth 3% more.
- Typically 100% of the downpayment will go towards the original purchase price of the property. (If the home is purchased as agreed to at the end of the agreement period.)
- Typically a portion of the monthly lease payment will be credited against the purchase price of the home as well. Example would be if the monthly lease payment was $1000 and 50% of this payment goes against the purchase price, than you would have an additional $6000 in equity after a 12 month period.
So if you are interested in finding out more about our available rent/lease to own properties, please fill out the form to the right and we will be in touch shortly.