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Article:
Rent to Buy Homes: Begin to Secure Your Equity by: Gary Carraghan Renting to own provides quality solutions to home buyers with credit problems. If you desire to own your own home but are unable to secure conventional financing today, working with agencies or individuals who provide rent to buy homes may well be your most effective and, in the long run, profitable option. A lease purchase can make your rent money work for you in a way that renting from a landlord never could. Renting to own real estate operates on very much the same concept as does renting to own appliances, furniture, or other less valuable asset. A down payment is made and a monthly payment agreed upon and taken away from the monthly balance until it has been fully paid, and the property becomes entirely owned by the payor. Rent to own is nothing more than a leasing option. After a certain period of time, the payor of a lease is given the right to buy the home without it having gone for sale on the open market and at a reduced price corresponding with whatever balance remains on the home. In a typical lease situation, the lessee has no rights to the property upon the agreements expiration. During the rent to own process, however, the down payment of a tenant is made as an option to, at the end of the lease, purchase the property and inherent the equity built up during the tenant's stay in the property. Beyond just another financing option, the rent to own process is perfect for the prospective home buyer who might have trouble qualifying for a loan. Many Lease-Purchase programs allow the occupancy of a home for up to 12 months prior to purchase, allowing the buyer to save for a down payment on the same property if he or she is facing credit issues which might otherwise make buying any home impossible. Normally these lenders require a 3% to 5% down payment of the purchase price. 'Can you really rent to own a home?' is a valid question discussed at www.super-mortgages.com/Rent-to-Own-Home. On the other hand, any who take advantage of the rent to own process find it worthwhile if for no other reason than the peace of mind achieved. Tenants have full control of the home and can maintain it or improve because it will be yours when they exercise their option to buy. Consider the following example to illustrate the process: A nice 3 bedroom, 1 bath single family home located in a near west suburb of Chicago in a great neighborhood with good schools and a strong community is available for sale. It has been freshly painted, cleaned, and is ready to move in. The purchase price will be $'215
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