The rent to own homes agreement provides an opportunity for a person intending to own a house to rent it then buy the house later after the rent to own period expires. When you enter into the rent to own home agreement, you will be required to pay monthly rent whereby some of the cash will be used as part of the rent, and the rest used to build your credit scores. You will be forced to deposit a non-refundable funds to the house owner which is less as compared to the value of the property. After the agreement has been reached, the home buyer or the rent to own house buyer is given a chance to purchase the house at an agreed quote which is not influenced by the change in the market value for the same property. The agreement does not bound you into buying the home in question at the need of the rent to own time as you can decide to move to another property.
The rent to own homes has gained popularity in the recent past as they give a person a chance to learn on the neighborhood among other advantages which come with this contract. Part of amount paid each month as part of rent for the rent to own property is not treated as rent but it is used to secure the current selling price even when the market value for the same house change in future. Caveats included in the rent to own contracts require an individual to honor the monthly rent as agreed and to take the rent to own house as rental throughout the renting period. When you wish to improve the appearance of the rent to own home, then you are required to request the homeowner to grant you permission to continue. The rent to own homes attract high rental rates, but some of the cash paid is used as savings which will be vital when purchasing the house in question.
Some of the rent to own home require minor repair or renovations to be done by the renter as their aim is to purchase the house after the rent-to-own period is completed. Homeowners are required to make substantial improvements on the house until you purchase the house in question. One of the benefits of using the rent to own homes is that the renters are converted into homeowners throughout the agreed period. You can clear your poor credit past and improve on your creditworthiness though the use of rent to own homes. Ensure that you have used the services of a home inspector before making any purchasing decision as they will help you to avoid some of the errors that will cause you incur more costs in future trying to renovate or repair the house.