Rent To Own Houses MN

Want to buy a house but your credit is holding you back? Or, perhaps you have no credit and the banks tell you it will take 1-2 years before you can buy. If so, a rent-to-own program might be just what you need.

Here’s how a typical rent-to-own program works:

• An investor makes a house available on a rent-to-own basis.
• The renter puts a small down payment on the house.
• The investor gives an “Option to Purchase” to the renter.
• After 3-12 months the renter buys the house with a loan from the bank.
• The renter is now a homeowner thanks to the rent-to-own program!

So why not just wait for 12 months and buy the old fashioned way? You could, but how much money will you throw away on rent? If your rent payment is $1,200 per month, that equals $14,400 after 1 year. With the exception of a small rent-credit refund , that money is gone!

With a rent to own program as much as 20% of your rent payment will be applied to the purchase price. So using the same numbers on a $200,000 house with a $5,000 down payment, let’s do the math:

$200,000 less $5,000 means you can buy it immediately for $195,000. Or, you can rent-to-own the house for 1 year and let your money work. You spend $14,000 but 20% ($3,600) is applied to the purchase price. At the end of 1 year you can buy this rent-to-own house for $191,400. But wait, a typical house usually appreciates in value at the rate of 4% oer year. So this house is really worth $208,000!

You invested $5,000 into a rent-to-own house and you made $11,600! That alone is incredible. But we haven’t even factored in the $12,480 in realtor fees you don’t have to pay! If you add the savings in realtor fees into the equation, you have just earned $24,080 by investing $5,000 into a rent-to-own house!

If you’ve been considering a rent-to-own program, now is the time to make a change!