Rent to Own Homes
For many, the economy has made buying a house to own very difficult. For that reason, a house to rent to own may the answer. While finding a house to rent to own is not always easy, they are becoming increasingly more popular. The way that this system works is that you find the house to live in, you sign a lease for usually between one and three years. You pay the deposit and your first months rent. You then move into the house to live. Pay your rent each month, a portion of that rent goes towards the eventual down payment when you are able to buy the house. This is a wonderful solution for those with credit issues.
While living in the house
Renting a home to eventually own allows you to live in your dream house sooner than you may have been able to. You are able to get to know the house and the neighborhood. You are also able to live in the house to get used to it while you work on making your credit better. During this time you are living in the home, you can get to know your neighbors and you will get to know about any issues the house may have. You also have the benefit of knowing that the rent you are paying for the house to live in is also going toward your down payment.
While living in the house you will usually be responsible for taking care of the yard and some bills such as the water bill, and maybe the insurance. Read your lease carefully before signing and make sure you understand it.
Finding a home
Finding a home to rent to own may take some time but it is possible. One thing to watch for is those that promise to help you find a home to rent to own in exchange for money. Often these people will charge you a couple of thousand dollars, yet they do not do anything for you that you could not do on your own.
Check ads such as those in local classifieds or on Craigslist. Rent to own homes are often advertised this way.
Place your own ad on a site such as Craigslist. In the ad, list what you are looking for, be specific as to size and area if you have a preference. In the ad state that you are looking for a home to move into that is a rent to own.
Check for sale by owner ads, as you may be able to work with someone who is selling their home this way. They may be willing to do a rent to own in order to get someone into the home fast. It could be preferable to leaving the house sitting unsold for months.
Tips and comments
Check your credit report and begin cleaning it up as soon as you are able. The quicker you take care of this, the better your credit will be when you do apply for a mortgage.
Pay down your credit cards if they are charged up to the limit. You want your balances to be less than half of your available credit.