46% of potential home buyers cite the struggle to obtain a down payment as a major roadblock when attempting to buy a house. Indeed, collecting a sizeable enough down payment poses a challenge. Fortunately, there are other options available.
Namely, you can engage in rent-to-own programs. Curious about the specifics of rent-to-own homes? Then read on.
Here's everything you need to know about this unique path to homeownership in Tulsa, OK.
What Are Rent-to-Own Homes?
First, let's discuss what a rent-to-own home is. Aptly named, this is a home that you start out renting and then eventually buy. In particular, you pay rent until you have a suitable enough down payment.
So, in essence, a rent-to-own home enables you to purchase a home without actually purchasing it. But over time, as your financial situation improves, you're able to legitimately buy the home. At this point, the home belongs to you, so long as you're able to pay your mortgage.
The Benefits of Rent-to-Own Homes
Rent-to-own homes come with a variety of benefits. While they're not the best option for all home buyers, they're the ideal option for some.
One of the biggest benefits of a rent-to-own program is that it locks in a price. As such, you don't have to watch home prices soar as you save up for a down payment.
Another benefit is that you'll get to immediately live in the home you'll one day own, even without a down payment. This wouldn't be true with a standard apartment.
Finally, rent-to-own programs often enable you to earn rent credits. These not only help pay for the total price of the home, but they also help you to get a better interest rate on your mortgage.
The Downsides of a Rent-to-Own Home
While there are benefits of rent-to-own programs, there are downsides as well. The most noticeable of these is a higher rent price than what would be typical otherwise. Because a portion of your rent goes to your eventual down payment, you have to pay more for your rent on a monthly basis.
In addition, if you were to back out before purchasing the home, you wouldn't recoup any of the additional money you spent upfront. In other words, you could lose your down payment.
Finally, if you do decide to back out of a rent-to-own situation, you might face legal trouble. Either you'll have to pay a large fee in order to back out, or you'll have to go to court in order to rectify the situation. In either situation, you're losing money.
If you think you can live up to the agreement you signed at the beginning of the program, a rent-to-own home would suit you well. If you doubt that you can, you should consider other options.
Looking for Rent-to-Own Homes in Tulsa, OK?
Does the rent-to-own process appeal to you? Looking for rent-to-own homes in Tulsa, OK? If so, look no further than PMI Green Country.
We have a wide variety of rent-to-own homes available. Regardless of your needs, we're sure to have a home that suits them.
Contact us now to get the process started!