Depending on where you live in the United States, you may never have heard about “rent-to-own homes” in your area. Now that you’ve stumbled across the intriguing concept, you probably have plenty of queries. Here are some of the most frequently asked questions about the rent-to-own process and straightforward answers to go along with them.
How Do You Find a Home That You Can Rent to Own?
First of all, you can find one on your own or with the help of a realtor, depending on your budget and preference. Secondly, you’ll need to look for sellers who are interested in renting to own their home. You can do this by speaking to people who are looking to sell their home soon or researching online.
Do You Have to Buy the House Eventually If You Rent It?
This depends on your contract, which you should read closely before signing. Most rent-to-own agreements simply give you the option to buy the house if you decide to, but some do require you to complete the purchase someday.
Can I Rent to Own With a Low Credit Score?
Yes. Many people with low credit scores use rent-to-own homes as a tool to build their credit histories and improve their scores. Then, once their scores are high enough to apply for a mortgage, they transition from the rent phase into the own phase.
What Do I Need to Qualify for a Rent-to-Own Home?
This depends on the individual seller you are working with. Each one might have different stipulations based on where they live, how large their house is, and whether or not they require you to eventually buy the property. Usually, you will need to provide proof of a stable income, a clean background check, and the ability to remedy any financial red flags you may have (bad credit, debt, etc.).