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All you Need to Know About Rent to Own Homes
Buying a ready built home or constructing your own is not always easy as it involves huge sums of money to get s good one. Due to large sums of money involved in owning a home, there are a number of available financing options that aim at helping someone to own a property and they can pay in calculated amounts for a specified period of time until the loan is completely paid. It’s possible to be in a position in which you don’t qualify for the mortgage at that specific time maybe because of credit history or other factors that are part of the requirements of the loan and in such a case, you will need another method of enabling you to get the home you desire. The method you can use in acquiring a home when faced with such a case is rent to buy home in which you are required to rent a home for a certain period of time after which you can buy the home. At the end of the rent contract period you could be obliged to purchase the property and in other cases you might have the option to opt out and this is usually determined by the contract you sign before getting into the house hence it’s important to ensure that you understand the terms of the contract before signing it.
In some cases you might be so ready to own a home hence you go ahead and sign a rent to own home contract that states that you will be required legally to buy the property after the end of the purchase period but for various reasons you don’t want to buy the property maybe because your financial goals did work out but since the contract you signed stated that you are obliged to purchase the property you will face legal charges for breaching the contract. There are situations that might cause you to back out on the purchase deal for the rent to own home deal and you will be a good position to do if your contract stated that you have that option of backing out since in such a case you are legally allowed to unlike in cases where you are obliged to purchase the home at the end of the rent contract period. The rent to own home works by first depositing a required amount of money as option fee and some premium rent then you can go ahead and occupy the house and that’s until the expiry of the contract which you can either buy the property or opt out if you no longer want to buy it but that option can vary depending on the contract you signed. This kind of contract is very helpful especially when you don’t have the funding immediately as you are able to work on getting the funding as you occupy the house.
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