Sept. 12, 2011

Hawaii Rent to Own Benefits for Buyers

Hawaii rent to own homes are a great idea for people who do not want to do apartment living any longer, but not enough money to buy a home. A rent to own home is an option that can get you out of the apartment and into a home faster. When you rent to own, or do a lease option as it is sometimes called, the property that you rent will be slightly above the market value. Before you make the move, you and the seller will agree on a purchase price for the house and date to move in. When you sign the contract to rent to own, you can purchase the property at any time during the rental time frame until the rent to own option expires, which can be from months to years.

When you actually buy the house the seller will give part of the money you paid back to the buyer, which is usually the portion of the money that was over the market rate. If you do not buy the house, the seller gets to keep all the money you paid in on the property. In some states they do not let buyers and sellers enter into lease options or rent to own home so make sure that the contract you sign is legal.

It appeals to buyers mainly because of the financial aspect, which is that the buyers do not have to the huge down payment, the income each month that is needed to qualify for a mortgage, or the right credit score. In addition, when they sign the contract they are making sure that they do not have to be concerned about rising house prices because the house they are renting to own has the price locked in. They buyer will not have to be concerned about paying for the property taxes, homeowners insurance, or private mortgage insurance.

Also, the seller normally pays for any repairs or maintenance on the house. The buyer can see if they really want to own a home before making a financial commitment by purchasing the home. If the buyer does decide that own a home is not for them and walks away, all they will be out is the rent that they have put into the home, which is no different than if they were renting an apartment.

If you want to get out of that apartment and into a house, then a rent to own contract may be the solution for you and your family.

Posted in Home Buying Guide
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