Rent To Own Homes Edmonton
Edmonton Rent to Own Houses Offer Many Benefits to Prospective Home Buyers
Want to buy a home in Edmonton, Canada? If yes, then you should consider getting a rent to own house. Edmonton rent to own houses, also known as rent to buy homes or lease option homes, is a rental agreement under which the renter has the option of buying the house. This type of arrangement works similarly to a typical car lease. The renter puts down a “purchase option” deposit – which is usually less than the 5% required by banks – and pays a specified amount each month to live in the home. And at the end of a specified period of time – generally 3 years – the renter has the option to buy the home. A portion of the monthly payments, or rent, is credited towards a down payment to eventually acquire the property.
Rent to Own Houses in Edmonton
There are many rent to own homes Edmonton properties available in the market today. These properties offer a number of potential advantages to prospective home owners, especially those with poor or non-existent credit histories. Qualified buyers can always get low interest loans to finance a home purchase. But if your credit score is less than stellar, you can only qualify for high interest loans or pay high rental prices every month. That’s where Edmonton rent to own houses can help.
If you have blemished credit, but good, steady income, you need to know that you can start owning your own home in Edmonton Alberta Canada today. With rent to own homes Edmonton programs, you don’t have to qualify with a bank. Traditionally, lenders require prospective borrowers to make a down payment of 20% of the purchase price. Also, borrowers must demonstrate a good credit history. Not only do these tough loan standards raise the cost of acquiring a home, but also shut many people with decent incomes out of home ownership.
Rent to Own Edmonton Homes
Rent to own homes Edmonton assistance programs typically require about 4% down payment or purchase option deposit. This means with only 4% of the purchase price you can live in a house and start making reasonable payments towards acquiring it. For example, if the house is worth $200, 000, you’ll be required to pay $8000 in down payment, and then pay a significantly higher rent in order to accumulate the required down payment. If you’re looking to own your very own house in Edmonton but can’t qualify for a conventional mortgage at this time, then a rent to own program is likely to suit you.
Edmonton rent to own houses are available from as little as $1700 per month. This means if you are currently paying $1700 per month in rent and utility bills, you can start the journey towards owning your own home, rather than being a renter. Remember you can be a renter for as long as you want. But at the end of years of renting you’ll still be a renter, with all the money going to your landlord. If something happens and you’re unable to pay rent, the landlord may ask you to move, and you must move. There is no choice. With rent to own homes Edmonton programs, you have a choice. In fact, you’ll have a big chance of owning your home.
The main benefit of entering into a rent to own contract is that it gives you ample time to save for a down payment as well as to repair your credit history. Under the contract a portion of your rent goes towards paying dawn payment. So the period of the contract will give you time to save some money, while allowing you pay down the initial costs of acquiring the property. By giving you significant monthly credits towards your home purchase, while you live in the house, rent to own homes Edmonton assistance programs will enable you to build up equity immediately and fix your credit.
Rent to own homes Edmonton assistance programs can be a valuable alternative for buyers who otherwise would not have the required credit rating or money saved to purchase their own home, but have a steady income, such as the self-employed, small business owners, individuals with good income but no credit history, previously bankrupt individuals, people with good income but poor credit, and those new to Canada. Taking advantage of these programs will help you find and live in your dream home before acquiring it.