Browse Rent To Own Homes in Columbia, TN
Are you looking for a rent to own house in Columbia? 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 Columbia area.
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Featured Rent To Buy Houses in Columbia, Tennessee
Browse the following featured properties in the Columbia, Tennessee area, or click the link on this page to get access to the complete listings for Columbia 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.
Columbia 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 Columbia, Tennessee
Homeownership is a dream shared by many. If you have been thinking of buying a home but are facing unique challenges such as having a low credit score or not having enough money saved up for a down payment, choosing a rent-to-own home could help you overcome these challenges. The following section takes a closer look at some of the benefits of Columbia, Tennessee rent to own homes:
1. You don’t need a high credit score. Typically, rent-to-own homes are designed for people who are credit-challenged. Unlike a traditional mortgage that requires you to have an extremely high credit score in order to qualify, you can usually get into a rent-to-own home with a much lower credit score.
2. You can buy the property at today’s prices. In most cases, the value of real estate goes up over time. That means that if you wait for a couple of years to buy a home, there is a good chance you will have to pay far more for it than you would today. When you enter into a rent-to-own contract, however, you freeze the price of the home at today’s prices. This can save you thousands of dollars on the purchase price of the home when it comes time to buy it at the end of the contract period.
3. You don’t need to have a lot of money set aside. If you try to buy a home through traditional means, you need to have thousands of dollars set aside for a down payment. Saving up this much money can be challenging. Rent-to-own homes, on the other hand, usually don’t require much, if any money in order to move in. This makes them far more accessible if you don’t have a lot of money in savings.
4. You can try before you buy. Oftentimes, people think they have found their dream home only to realize after they purchase it that it is more of a nightmare. Unfortunately, by the time they figure out that the home has issues or the neighbors are irritating, it is too late since their loan is already locked in place. When you choose a rent to own agreement instead, you have time to try out the home before you buy it. If you choose not to buy it at the end of the contract, you will lose out on the extra payments that you have made while living in the home. However, you won’t be stuck with a mortgage on a property that you hate.
These are just some of the countless different benefits associated with investing in Columbia, Tennessee rent to own homes.