Browse Rent To Own Homes in Florence, KY
Are you looking for a rent to own house in Florence? If so, then browse the featured listings on this page, or signup to access our complete guide and listings for all lease to own properties in the Florence area.
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Featured Rent To Buy Houses in Florence, Kentucky
Browse the following featured properties in the Florence, Kentucky area, or click the link on this page to get access to the complete listings for Florence rent to own houses.
How Rent To Own Real Estate Works
Also known as a lease option, rent to buy homes are a type of owner financing tor real estate properties.
While the terms of the agreements can vary from house to house, the typical scenario is one in which the owner is looking to sell the property but is willing to accept payment over a period of time, rather than an up front settlement.
In this case, the buyer and seller both agree on the selling price of the home, and the terms of the purchase agreement, specifying things such as payment terms, interest, and length of the agreement.
Usually, owner-financed properties are paid off much sooner than a traditional bank mortgage, but by allowing the renter time to accrue equity in the house, the renter can often roll over that equity into a traditional mortgage after 1-3 years, if the need arises.
Every month the renter/buyer makes a payment to the seller. Typically, part of this payment is credited as rent, while a second part is credited towards the interest on the loan and/or equity in the home. Over time, the renter can then buy out the seller, even if the renter didn’t originally have a large downpayment or the credit needed to qualify for a traditional mortgage.
Florence Lease Purchase Homes and Houses
While there are many advantages to lease option, or lease to purchase homes, one of the main difficulties can be in locating the currently available properties.
Many rent to own listings are never uploaded to national or local databases, since it is common for sellers to work independently and not go through a real estate agent for these transactions. It is also common for sellers of owner financed, rent to buy properties to sell their homes casually, meaning that they are interested in selling, but are in no hurry to do so, meaning the listings are not widely publicized.
To find the full list of rent to buy properties in your area, you need to sign up for a dedicated listing service, which works to identify all of the relevant opportunities within your target geographical area.
Without a reputable listing agency, finding these properties can be extremely difficult!
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Listings for Rent To Buy Properties in Florence, Kentucky
Traditionally, the rent-to-own industry has gotten a bad rap. This is largely due to the fact that businesses that sell home furnishings and electronics through rent-to-own agreements tend to take advantage of customers, charging extremely high interest rates that require them to pay far more than the value of the item before they actually own it.
Rent-to-own homes, however, are quite a bit different than this. These types of contracts benefit both sellers and buyers, making it a win-win situation for both parties. Before you sign one of these contracts, however, it is important to do your homework so that you know exactly what you are agreeing to. This will help ensure that you don’t wind up getting taken advantage of.
When looking at Florence, Kentucky rent to own homes, you first need to understand how the process works. It begins by signing a contract with the landlord that gives you the option to buy the home outright at the end of a specific period of time. Typically, these contracts are anywhere from two to three years in length, although that time period can vary.
During the contract period, you will pay extra money each month along with your rent payment that the landlord will set aside to be used toward purchasing the home. By the time the contract is up, you should have a significant amount of money that can be used to help cover the costs of buying the home. In most cases, this money is used toward the down payment or toward closing costs or other home buying fees.
This is also a great option if you have damaged credit since it gives you extra time to improve your credit score before you have to take out a mortgage. This can help you get a lower interest rate on your mortgage, saving you a lot of money.
Sellers also benefit from Florence, Kentucky rent to own homes. They get a renter who has a vested interest in caring for the property since they will eventually be the ones who own it. Additionally, rent-to-own agreements typically make it easier to find a buyer for the home since it gives people with less-than-stellar credit a chance to buy the home. This can open up a much larger pool of potential buyers, making it easier to find someone who is interested in buying the home.