Browse Rent To Own Homes in Smyrna, TN
Are you looking for a rent to own house in Smyrna? 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 Smyrna area.
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Featured Rent To Buy Houses in Smyrna, Tennessee
Browse the following featured properties in the Smyrna, Tennessee area, or click the link on this page to get access to the complete listings for Smyrna 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.
Smyrna 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 Smyrna, Tennessee
If you live in Smyrna Tennesse, you should know that there are established rent-to-own companies operating in the area and in other areas in Middle Tennesse. In this article, we are going to walk you through how these companies work so you will know what to expect, and more importantly, you will know if rent-to-own is right for you.
Rent-to-own companies have properties on their list that you can choose from. Once you have chosen a property and signed a contract, you will then be required to pay a minimal option fee, which is typically from $2,000 to $4,000. This is not money that disappears. It actually gets deducted from the sales price of the home. As you are moving in, you pay rent until the rental period expires. Now, depending on the rent-to-own lender, the rental period could be anywhere from two years to five years. If you opt not to buy the property, you can, however, most lenders will not refund the option fee.
Having the words ìrentî and ìownî practically side by side tells you that a portion of your rent gets credited to your purchase. The standard credit is $200. So, if you pay $1,000 per month in rent, $200 is allotted for the purchase of the home and at the end of two years, the $4,800 thatís accumulated that you can use to pay for the costs of closing the purchase transaction.
If it sounds like you are wasting your money on rent and saving a little for purchase later, it is. And this is the reason why you should get a home loan first and only explore your rent-to-own options if you get rejected. However, for people who have a low credit score or no credit score at all, rent-to-own presents an opportunity for them to hit two birds with one stone, that is, build their credit score while locking the price of a property at the current low price not later, when the price of a property may have already gone up.
So, if you think a rent-to-own scheme is right for you, go ahead and contact the rent-to-own lenders in your area. Just like anything else, you donít just buy the first property you set your eyes own. You should be checking at least three properties before choosing and signing a contract with any of them.