If you have bad credit, a low down payment, or can’t find a mortgage lender, a very viable option is a Rent to Own Homes program. Rent to own has been around for a long time and generally applies to purchases that are pricey. Oakville real estate certainly applies, and prices continue to climb every year. For many renters, buying a home does not seem attainable.
There are a few select companies that work with first time home buyers to get them into their dream home faster. With the rent to own program, you meet with a consultant to review your financial situation and determine how much you can comforatbly afford to spend on a home. You figure out your monthly budget, including additional home owner expenses – like utilities, insurance, maintenance, etc. Once a reasonable budget is set, a time plan is marked out. You are then ready to go home shopping.
You find the home you like within your budget. The rent to own company makes sure it is a sound investment by checking it for structrual soundness, comparable market value, repairs required, etc. They arrange the purchase of the house and you get to move in right away, usually with only 5% down. As you live in the home, you can decorate, make improvements and more – knowing any increases in home value will be to your benefit. After your lease period is up, you buy the home at the pre-determined price, locking in any increases in market value above that price.
During the lease period, you make your payments on time and they work with you to clean up your credit report. A portion of your payment goes towards the money you put down on the home when it comes time to purchase. Rent to own homes is quicker way to become a homeowner and start buiding equity in a home.
Of course, you will want to work with a reputable company with proven success. Learn more about rent to own homes in Ontario. If you live out of province, learn more about rent to own homes Quebec. The consultation is free.