Browse Rent To Own Homes in Georgetown, KY
Are you looking for a rent to own house in Georgetown? 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 Georgetown area.
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Featured Rent To Buy Houses in Georgetown, Kentucky
Browse the following featured properties in the Georgetown, Kentucky area, or click the link on this page to get access to the complete listings for Georgetown 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.
Georgetown 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!
Sign up below to get access to one of the most comprehensive rent to own listing services in the country.
Listings for Rent To Buy Properties in Georgetown, Kentucky
As a homebuyer, it can be difficult to know which option is best when it comes to purchasing a home. You can go the traditional route of getting a mortgage and buying a home right away. However, there are some stumbling blocks that may get in your way. Unless you have excellent credit, you may not be able to qualify for a mortgage. Additionally, most lenders require large down payments before they will approve your loan. That means that if you don’t have a lot of money set aside, you may have a difficult time finding anyone who is willing to lend you money.
One alternative you may want to consider is looking into Georgetown, Kentucky rent to own homes. These homes can help you overcome the challenges that go along with buying a home through traditional methods. In order to understand how they can help you, you first have to understand how one of these agreements works.
When you find a rent to own home that you are interested in purchasing, you will sit down with the landlord and come up with a contract that outlines the details of how the process will be handled. Typically, the contract has a set length of two or more years. During that time period, you pay an agreed upon amount of money each month for rent. This monthly payment includes extra money that the landlord sets aside to be applied toward the purchase price of the home after the contract is up.
The contract also stipulates how much the home will be purchased for. This can allow you to get a great deal on the home since it allows you to freeze the price at today’s home values. Since real estate typically appreciates in value, this can wind up allowing you to purchase the home for less than it is worth at the end of your contract.
When your contract is up, you will have a large amount of money set aside from the rent payments that you have been making. This money is ideal for using as your down payment. Additionally, over the time that you are in the home, you have a chance to improve your credit score so that you can get a better rate on your loan.
If you are thinking of buying a home but have credit challenges or don’t have a lot of money set aside, Georgetown, Kentucky rent to own homes can be an excellent option. Just be sure you know what you are getting into before you sign your name on the dotted line.