Browse Rent To Own Homes in Lexington, KY
Are you looking for a rent to own house in Lexington? 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 Lexington area.
Click the link below to access the listings!
Featured Rent To Buy Houses in Lexington, Kentucky
Browse the following featured properties in the Lexington, Kentucky area, or click the link on this page to get access to the complete listings for Lexington 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.
Lexington 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 Lexington, Kentucky
If you live in Lexington Kentucky, you should know that there are many properties out there that you can own through a rent-to-own scheme. The only thing you need to do is to search for ìrent to own homes in Kentuckyî in Googleís search bar. There you should be able to find websites like http://foreclosure.com, http://trovit.com, and http://realtystore.com.
These websites combined have an extensive listing of rent-to-own properties in the area. But what is rent-to-own and how does it work? It is a scheme whereby you sign a contract with the homeowner, naming you the tenant with the option for purchase at a later time. While rent-to-own was unheard of in the past, within the last few years, there has been a surge in the number of homeowners who are willing to negotiate a purchase through this scheme.
The rental period usually lasts two to five years, after which the buyer is going to decide whether or not he is going to go ahead with the purchase.
If you want to own a home through rent-to-own, you need to take a look at how much of your rent is allotted for home buying credit. In most cases, only a certain portion of the rent is going to be credited or set aside for purchase time. For example, if the original rental price for a property is $1,700, with a rent-to-own scheme, you would have to pay $2,000 with the $300 kept as savings. It is really the best solution for people who want to buy a home but have a spotty credit record.
Properties, for the most part, do not require a deposit. The only thing you need to do is to sign a contract and start paying rent. How much rent are we talking about? Well, that really depends on the kind of property that you are renting. There are those that you can rent for only $400 per month and there are those that are a little pricey and cost $2,000 per month to rent. But of course, just like anything else, you only get what you pay for. And for $400, what you get is a property that, while decent, may be located on the fringes of Lexington. If not that, the house may be small and appropriate only for a three-person family.
Before signing any contract, make sure to check out several properties and talk to the owner about his terms for rent-to-own.