Browse Rent To Own Homes in Collierville, TN
Are you looking for a rent to own house in Collierville? 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 Collierville area.
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Featured Rent To Buy Houses in Collierville, Tennessee
Browse the following featured properties in the Collierville, Tennessee area, or click the link on this page to get access to the complete listings for Collierville 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.
Collierville 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 Collierville, Tennessee
As we were searching for rent-to-own homes in Collierville Tennessee, we were surprised to find out that there aren’t that many properties available for rent to own. But this is only because we were looking only at two websites (http://www.housinglist.com/ and http://www.realtystore.com/) and these two websites combined only had two listings for rent-to -own. Most of the listings are for foreclosed properties and properties that are for sale by the owner.
But do not despair, however, because if you look hard enough, we are pretty sure that you will be able to find several rent-to -own properties that you can choose from. Just donít limit yourself to the Internet. Drive to the offices of the different real estate brokers and ask them about their listings.
If you’re like most people, you’re probably wondering what the advantages are when you buy a property through rent-to -own. We can think of several benefits, but the one that is most significant is the fact that you can own a home even if you don’t have money for a down payment. This is significant for people who has been turned down by the banks for a home loan. With rent-to-own, the prospects of becoming a homeowner yourself are bright. It is also a great way to build your credit score. How does it work?
First, you enter into an agreement with the owner. you then pay rent until the time when the rental period expires and you move on to the purchase phase. The rental period can be as short as two years or as long as five years depending on your contract. Within this time, you should faithfully pay rent because not only will you be keeping good faith with the owner, you will also be improving your credit score.
Rent-to-own rental rates really depend on the state and the kind of property being sold. In Tennessee, however, it is possible to get a house for only $400 per month with no one ever checking a buyerís credit score. Please take note, however, that only a small portion of the rent will be credited towards your purchase. It is entirely possible that only $50 of the $400 rent you pay will go into the actual purchase.
So, for example, if you signed up for a two-year contract, you would have $1,200 at the end of the period, which you can then use to pay for closing costs.