Browse Rent To Own Homes in Germantown, TN
Are you looking for a rent to own house in Germantown? 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 Germantown area.
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Featured Rent To Buy Houses in Germantown, Tennessee
Browse the following featured properties in the Germantown, Tennessee area, or click the link on this page to get access to the complete listings for Germantown 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.
Germantown 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 Germantown, Tennessee
While most individuals have a long term plan to buy their own house, the reality is that a large portion of the population just doesnít have the available capital to make such a large purchase. Even those who have good and steady jobs often find themselves incapable of saving up such a large lump sum of cash, especially when the demands of an unpredictable everyday life come into play. Mortgages for many decades proved and effective remedy to the problem of inaccessible property, the recent crash of the housing market has caused interest rates to skyrocket, effectively putting long term loans out of many individualsí price ranges.
This can put many individuals between a rock and a hard place. Many people canít afford to buy a home or a get a mortgage to make a property purchase, but paying rent every month is ultimately not a fruitful endeavor. This is because money that goes into buying a house or paying for equity on a home is an investment and continues to accrue value, while money that is put toward rent essentially gets consumed. Over a long period of time, individuals can end up wasting a massive amount of money on paying rent.
The good news is that thereís a way to put at least some of your rent money toward owning your own property, without having to apply and be approved for a mortgage. Rent to own systems are designed specifically for prospective homeowners who would like to stop wasting their monthly rent, but cannot immediately pay for a home or qualify for a good mortgage. When a renter signs a rent to own contract with a landlord, they agree to pay their rent in full and on time for a certain duration of time. Once this agreed upon period is over, the rights to the property get transferred to the leaser, who becomes owner of the home that they were renting.
This system is invaluable to many individuals and families who would otherwise not be able to put their monthly payment toward something that will have value in the future. In this sense, rent to own homes are often an excellent investment to make. All the same, it is important to thoroughly analyze the terms and conditions attached to a rent to own home before committing. This way, you ensure that you will be getting an excellent home at a good price.