Browse Rent To Own Homes in Nashville, TN
Are you looking for a rent to own house in Nashville? 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 Nashville area.
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Featured Rent To Buy Houses in Nashville, Tennessee
Browse the following featured properties in the Nashville, Tennessee area, or click the link on this page to get access to the complete listings for Nashville 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.
Nashville 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 Nashville, Tennessee
Nashville is an exciting city with lots to do. Unfortunately, real estate prices in the area tend to be relatively high compared to smaller surrounding towns. This can make it difficult for the average family to afford a home. At the same time, paying rent month after month doesn’t necessarily make sense since you are essentially throwing your money away rather than building equity in an asset that you can use to secure your future.
Another option that you may want to look into is buying a rent to own home. In essence, you sign a contract with the property owner that allows for a portion of your rent to be applied toward the purchase of the home. After a designated period of time, you then have the option to take out a loan to finish paying off the home. This can make it more affordable and easier to get into a home than trying to buy one outright.
Nashville, Tennessee rent to own homes come in just about every shape, size, and style that you could imagine. Before you run out and sign a contract for one of these homes, however, it is important to know what you are getting into. There are advantages and disadvantages to purchasing a home this way.
One of the major advantages is that you are able to lock in the price of the home. Even if property values rise over the term of your contract, you still only have to pay the amount you originally agreed upon. This also makes it far easier to save up for a down payment for most people. The extra money that you pay each month with your rent is set aside to be used toward a down payment, closing costs, or other fees related to the purchase of the home.
One of the downsides to going this route is that if you decide not to purchase the home at the end of the contract period, you don’t get any of the money back that you have applied toward the purchase price. That could add up to a significant loss. Because of that, you should only enter into one of these agreements if you are totally confident that you want to purchase the home and that your situation will not change over the next few years.
All in all, buying Nashville, Tennessee rent to own homes can be a great way to get your foot in the door when it comes to homeownership. Rather than throwing your money away on rent, you can be working toward owning an asset that will help secure your financial future.