Browse Rent To Own Homes in Owensboro, KY
Are you looking for a rent to own house in Owensboro? 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 Owensboro area.
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Featured Rent To Buy Houses in Owensboro, Kentucky
Browse the following featured properties in the Owensboro, Kentucky area, or click the link on this page to get access to the complete listings for Owensboro 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.
Owensboro 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 Owensboro, Kentucky
If you are in Owensboro, KY and you are looking for housing, you should give rent to own homes some serious thought. Here are four benefits you should consider when trying to decide if this would be a great idea for you.
1. Trying It Out
There are many who purchase property then they experience buyer’s remorse. It is a real challenge to look at a home and decide if it is right for you. Rent to own homes give you the chance to move your things in, live there for a while and determine whether or not this is truly the best option. If not, you can walk away from the deal with no regrets.
2. Most Credit Accepted
You can have credit that is in pretty bad shape and still qualify for a rent to own property. Since this is not a traditional home sale, the requirements are not as stringent. There are actually people out there with things like bankruptcies and delinquencies on their record and they have been able to obtain one of these properties with no problem.
3. Equity Gains
When you negotiate a rent to own price, it is locked in. This means that a home may increase in value and you will only have to pay the amount that was agreed upon. If this is the case, you will be able to buy a home for lower than the value, which means you will gain some equity. If you decide to sell at some point in the future, you can make a decent profit.
4. The Ability To Back Out
Sometimes you do not realize there are problems with a property until after you buy it, then you are stuck trying to make things right. When renting to own, if you notice significant issues, you can always back out of the deal without making a purchase. For instance, if you notice there is extensive water damage in the basement or something wrong with the roof, you will not be obligated to make a purchase.
As you can tell, there are some great benefits to considering a rent to own property in Owensboro. If you are exploring real estate options, you should certainly keep all of this information in mind. When making a purchase, the more options you have available to you the more likely you will be to find something you like.