Tuesday, November 6, 2012

How Rent-to-own Homes Work

: Level 1 Nav : Adventure">AdventureAutoCultureEntertainmentHome & GardenMoneyScienceTechVideoShowsBlogsQuizzesGamesRandom ArticleAppliancesCommunity LivingHome ImprovementLawn & GardenStain RemovalReal Estate Home / Home & Garden / Real Estate MORE STUFF LIKE THIS:Dollars and Sense: House Buying QuizDollars and Sense: House Buying QuizHow Home Sales By Owner WorksHow Home Sales By Owner WorksHow Home Appraisals WorkHow Home Appraisals Workby Sarah Siddons and Chris Opfer

#brandscape{position: fixed;text-align: center;margin:0px auto;top: 0px;z-index:0;cursor: pointer;background-image: url(http://static.ddmcdn.com/gif/hsw-sysk-brandscape-07-03-12a.jpg );background-position: top center;}#root{width:60px;} Page1Introduction to 2Process Involved in Rent-to-own Homes3Risks and Benefits to Buyers4Risks and Benefits to Sellers Real Estate Image GalleryReal Estate Image GalleryA home offered for sale in a subdivision in March 25, 2008 in Bolingbrook, Ill. The credit crisis and other economic worries have continued to take a toll on the U.S. housing market. See more real estate pictures.

Scott Olson/Getty Images

Home BuyingDollars and Sense: House Buying QuizHow Home Sales By Owner WorksHow Home Appraisals Work

You've just bought the home of your dreams, signed the contract and packed the moving van -- you're all set, right? Not if you haven't sold your current home first. So you put it on the market and you wait. And wait. And wait. In many cities where it makes more financial sense to rent than own, buyers may simply not be interested. In others, buyers do come along, but they don't have enough money saved for a down payment or their credit isn't good enough. How will you ever sell this house?

For many, the rent-to-own home may be the best option. Also called a lease-to-own house, the process works similarly to a car lease: Renters pay a certain amount each month to live in the house, and at the end of a set period -- generally within three years -- they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually buy the home.

Both renters and sellers need to be very clear about the contract they draw up before they agree to this arrangement. Renting-to-own has advantages and disadvantages for both parties. Sellers who have already bought a new house will have relief from paying two mortgages at once, and in a slow housing market with many homes for sale, this may be their best option. Buyers who can't yet afford a house may be able to get one more quickly.

Read on to find out how the rent-to-own process works.

PrintCite This!Close Please copy/paste the following text to properly cite this HowStuffWorks article:

Siddons, Sarah, and Chris Opfer.  ""  16 July 2008.  HowStuffWorks.com.  06 November 2012.CiteFeedbackPage1Introduction to 2Process Involved in Rent-to-own Homes3Risks and Benefits to Buyers4Risks and Benefits to Sellers5Alternatives to Rent-to-Own6Lots More Information More To Explore More Great LinksTop 10 Wacky Inventions for the HomeTop 10 Wacky Inventions for the Home10 Home Office Storage Solutions10 Home Office Storage SolutionsName the Price: MansionsName the Price: MansionsDollars and Sense: House Buying QuizDollars and Sense: House Buying QuizHome Construction PicturesHome Construction PicturesWatch home & garden videos >> You Might Also Like10 Most Expensive ZIP Codes to Live InEver wonder where the rich and famous live in the United States? Wonder no more. While there are hundreds of possibilities, we'll narrow it down to the top 10, including the longtime bearers of wealth and the up-and-comers of the country's elite.

Top 10 Ideas for Outdoor Living SpacesMost people spend the bulk of their home renovation time working inside. But with a little know-how, you can easily extend your living space to the outdoors, too.

Popular ArticlesHow to Install Door HingesHow do you water down white glue for spraying?How to Remove Chocolate Stains MOST POPULARMOST WATCHED MOST POPULAR10 Must-haves in a Storm Survival KitHow much do you know about efflorescence?Home Design PicturesHow Beer Kegs WorkMemory Matrix MOST WATCHEDGeneral Repairs VideosThe Stuff of GeniusCoolest Stuff on the PlanetHome ConstructionMy First Home Don't MissVote Now on the Coolest Way the World Could EndVote Now on the Coolest Way the World Could EndQuiz: The Most Embarrassing Moments in ScienceQuiz: The Most Embarrassing Moments in ScienceStuff to Blow Your Kid's MindStuff to Blow Your Kid's Mind CHECK OUT OUR PODCASTS STUFF NATION NEWSLETTERTHE HOW BEHIND TODAY'S NEWSSUBSCRIBE HOWSTUFFWORKSAdventureAutoCultureEntertainmentHealthHome & GardenLifestyleMoneyScienceTechMORE STUFFBlogsGamesHSW ToolsRSSMapsPodcastsQuizzesNewslettersVideoOUR WEBSITESAnimal PlanetConsumer Guide AutoConsumer Guide ProductsDestination AmericaDiscovery ChannelDiscovery Fit & HealthHSW BrazilHSW China HowStuffWorks ChinaInvestigation DiscoveryOprah Winfrey NetworkRevision3Science ChannelTLCDiscovery EducationStoreCUSTOMER SERVICEAdvertisingContact UsHelpCORPORATEAbout UsCareers @ DiscoveryPrivacy PolicyVisitor AgreementTAKE US WITH YOUFOLLOW US© 1998-2012 HowStuffWorks, Inc

View the Original article

No comments:

Post a Comment