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How Does Rent to Own Homes Work?

rent to own homes

A rent to own agreement may be the ticket you need to own your first home. If you dream of purchasing your own house but find it difficult to turn that into a reality, fret not. Most homebuyers such as yourself need a mortgage to purchase a house. However, to qualify for financing, you must have a good credit score or cash for a down payment. If you do not have both, the route to getting your title may be difficult.

Thankfully, you can count on an alternative solution which is eventually purchasing what you rent. So how does rent to own work? The concept is easy because you need to rent a home for a specific time frame. Then, later, you get the option to buy the property before the lease agreement expires. Thus, any rent to own agreement comes in two parts: the typical lease contract and the clause that provides the renters the option to purchase.

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