Browse Rent To Own Homes in Chapel Hill, NC
Are you looking for a rent to own house in Chapel Hill? 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 Chapel Hill area.
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Featured Rent To Buy Houses in Chapel Hill, North Carolina
Browse the following featured properties in the Chapel Hill, North Carolina area, or click the link on this page to get access to the complete listings for Chapel Hill 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.
Chapel Hill 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 Chapel Hill, North Carolina
There are plenty of Chapel Hill NC rent to own homes up for grabs, but have you looked at all the ins and outs of these types of mortgages? You need to know what you’re getting into, and you need to know how to get the best deal and what’s expected of you. There are quite a few steps to buying a home no matter what type of mortgage vehicle you plan to use.
If you choose a rent to own home, the renting part is temporary and part of the mortgage contract. The renting process continues for a set period of time, typically a couple of years, and you’re essentially leasing the property. After that set period of time, you have a decision to make. Do you still want to buy the home?
You can look at examples of rent to own contracts so that you can better understand the finer details of these types of mortgages. Don’t take on renting to own a home just because you couldn’t afford to buy a home using traditional means. You not only want to pay attention to the monthly rent-to-own rate, but you want to know what you’re expected to pay for the home of course. Are you getting a good deal?
You need to know what is going to happen with your option consideration money, and it’s best if it’s placed in escrow. If you ever get confused about a rent to own home contract, many experts suggest that you have a lawyer for these types of contracts anyway. Owner financed contracts often involve a lawyer, and something as different as rent to own contracts probably should as well. However, don’t mistake the need for a lawyer and the newness of these types of contracts to mean that they aren’t popular.
Rent to own homes in Chapel Hill, North Carolina are catching on more and more each day. Rent to own contracts have to be recorded in the books just like other real estate purchases, so be sure this is taken care of as well if you decide to go this route. One more major tip to point out is the fact that buyers need to be looking for long lease terms. As a buyer, you might have thought a shorter lease term was more beneficial, but that’s not the case with rent to own homes.