Browse Rent To Own Homes in Franklin, TN
Are you looking for a rent to own house in Franklin? 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 Franklin area.
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Featured Rent To Buy Houses in Franklin, Tennessee
Browse the following featured properties in the Franklin, Tennessee area, or click the link on this page to get access to the complete listings for Franklin 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.
Franklin 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 Franklin, Tennessee
Many people in the Franklin area are worried that they may never be able to fully buy their first home. If your credit is not wonderful or you don’t have the funds for a down payment, you may want to look into a rent to own property. A rent to own is simply a term that is used when a contract is formed by a seller and buyer. This contract simply states that the buyer will be paying a certain amount of money at a predetermined time as opposed to purchasing the property outright. In other words, it allows the buyer to stay in the home while paying for rent until they have the money to purchase the property at a future time. Typically, the cost of rent will not be the market value of that particular community. Instead, it is typically a much higher percentage. Most of the time, one can expect to pay at least 20% more than the typical market value of the area. In other words, the buyer will be paying 120% as opposed to the 100% that other renters will be paying. The extra 10% is used toward the installment payment.
When one enters into this type of housing agreement it allows the buyer to save up the money needed to purchase the home. In addition, it allows you the opportunity to enjoy a new home that you never would have thought possible through traditional financing.
Another advantage buyers tend to forget is the fact that their rental repayment will be on a fixed rate during the whole tenor of the lease, meaning it will not fluctuate with rising rental prices.
Another plus of a rent to own property is that allows you the opportunity to decide if the home and location are truly right for you and your family. During the time you are staying in the home you will have a better idea of the overall maintenance and repair costs that come along with the home. While you are renting the home that you eventually become yours, you are building a solid credit foundation.
However, there are some problems with the rent to own philosophy. If you do not purchase the home, you will lose the total upfront sum that was paid as well as all the installment payments. For homeowners who are on a serious budget, that is a very big disadvantage if your plans change. However, if you have been having issues saving up the proper amount of money for a home in the Franklin, Tennessee area, a rent to own property may be a good investment to look into.