Rent to own allows people who don’t have the money for a home up front to rent a home and put some of their monthly rent payment toward the down payment on the home. Just make sure you can qualify for a mortgage within two to five years, when the rental term expires.
In order to be eligible for homes for rent to own in Atlanta, you’ll need good credit and stable income. It’s also important to make sure of your contract terms as these are negotiable and should be reviewed by a real estate agent and/or lawyer. Typically, the rent is slightly higher than the fair rental rate, with part of your monthly rental payment set aside as “rent credits” which will go towards your down payment. The seller should establish how much percentage of your monthly rental payment will go toward the final purchase price of the property. At the end of your rent-to-own contract, you’ll need to obtain financing in order to pay off the balance of your home loan.
Here are some tips for renting to own homes:
1. Make sure you can afford it. Rent to own homes require that you have good credit and be able to pay off your mortgage in the long term, so make sure you can afford them before committing yourself to one.
2. Be sure they’re available when you need them. Many rent-to-own agreements require you to give notice if you want out within a certain amount of time, so make sure there are no other parties interested in purchasing the property before signing anything!
3. Look into whether or not there’s an option for ownership after making so many payments on time (and if so, how much more money will be required). The ability for you to purchase the property early might be included in your agreement, but it might not! So check what kind of options exist before signing anything!