5 Reasons to Go With Rent to Own Homes in MN

The idea of rent to own homes in MN is not a new concept. However, the idea is becoming more appealing all the time. There are features that benefit the owner, the potential buyer, and both. An element of trust is the prerequisite to this kind of agreement. The renter/buyer expects the owner to keep taxes, fees and payments current. The owner expects the renter/buyer to perform as agreed during the life of the contract. Following are 5 reasons to consider this type of action.

1. As a homeowner whose property has been on the market for a few years, the rent to own process is an excellent way to sell a home. There are a number of responsible people rebuilding their credit in order to buy another house. If you are ready to move, consider switching your home to a rent to own property.

2. As a potential buyer, you will sign an agreement with the homeowner. It is important to understand the contract you sign and how it affects you. Remember the person who owns the house is out to make a profit. The owner is still paying the mortgage and taxes and mortgage from what you are providing. Verify the amount that will be put into your escrow account from your monthly rent by including it in the contract as a specific dollar amount.

3. If your credit score put you just under the line for mortgage qualification at a low interest rate, an RTO contract lets you live in the home while working to build a higher credit score and saving additional money for the down payment.

4. Another reason people are going with rent to own homes in MN is that it locks in the price of the house. If value increases, you do not have to worry about someone making a better offer and starting a bidding war. If value decreases, you still know the house and property are in excellent condition and will rebound over time.

5. Having some of the rent set aside to use when applying for a home loan is an advantage. There is always a possibility that you still will not qualify for the mortgage. Build a contingency clause into the contract that will result in a portion of the fees and rental contributions being returned to you if you do not qualify for financing.

When both parties have a fair contract and act with integrity, the rent to own process is a valid option to the traditional purchase.