Browse Rent To Own Homes in Memphis, TN
Are you looking for a rent to own house in Memphis? 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 Memphis area.
Click the link below to access the listings!
Featured Rent To Buy Houses in Memphis, Tennessee
Browse the following featured properties in the Memphis, Tennessee area, or click the link on this page to get access to the complete listings for Memphis 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.
Memphis 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 Memphis, Tennessee
When searching the Memphis, Tennessee area for homes you are going to come across of wide variety of properties that offer various types of financing. In addition, you need to know about contracts, agreements, and other assorted legally binding terms. At first, it may seem like too much to take in, with a little time it is all rather easy to understand. However, it is important to do some research into these terms before starting your search for a home. In order to purchase a home an agreement needs to be made between the seller and buyer that can be agreed upon by both parties. One term that you may be hearing a lot of in the housing market is “rent to own’, which can be a viable term for both parties.
A rent to won agreement is very similar to renting a property, however, in this situation, the property will be yours to own if you fill the contractual obligations.
This agreement works out well for buyers who may not be able to come up with all the funds they need for a down payment all at once. It will allow the buyer to stay in a house that meets their needs while giving them the amount of time they need to acquire more funding.
In many cases, the buyer ill make a small percentage of the total property cost before they make a final payment over a period of time. Most agreements for rent to own properties require the buyers to make a particular payment toward the balance of the property, if the buyer fails to make these payments, they will forfeit their initial deposit. If during the time of the agreement a buyer needs to secure more funds for financing they have the ability to consult with financing companies or owner financing agents.
With the economy in the state that it currently is, rent to own programs have become quite popular. Many individuals can have the payment of the property made in two to three easy installments. Many sellers are willing to offer buyers with a decent down payment a rent to own credit. This practice is done to attract more buyers to a property.
Start your search online for Memphis, Tennessee homes for rent. If you can not seem to find one to your liking look in the newspapers as well as contacting local agents in your area.