Rent To Own Guide

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 · Investopedia explains rent to own in a simple and understandable manner: A rent-to-own agreement is a deal in which you commit to renting a property for a specific period of time, with the option of buying it before the lease runs out. Rent-to-own agreements include a standard lease agreement and also an option to buy the property at a later time.

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Rent Credit for Option to purchase rent credit for option to purchase is an acceptable source of funds toward the down payment or minimum borrower contribution. Borrowers are not required to make a minimum borrower contribution from their own funds in order for the rental payments to be credited toward the down payment.

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 · First, of course, is the amount of the fee. As a rule of thumb, 1% of the purchase price of the home is reasonable. The homes we rent range in value from about $130,000 to $175,000. The option fees we charge generally range between $1,450 and $1,950, which is slightly higher than 1%.

For many, the rent-to-own home may be the best option. Also called a lease-to-own house, the process works similarly to a car lease : Renters pay a certain amount each month to live in the house, and at the end of a set period — generally within three years — they have the option to buy the house.

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For people interested in Rent-To-Own options, we offer expert Rent-To-Own specialists who can answer any questions you may have about credit, the process and more. Just like owning a home, renting-to-own is a process that requires considerable care, effort, and reward.

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