The world is evolving, and so is the real estate market. More and more people are abandoning the traditional way of doing things and are adopting new methods. I guess it’s safe to assume the American Dream is – no longer a Dream anymore!
Rumor has it that financial institutions are no longer approving loans as smoothly and fast as they used to back in the day. Apparently, the recession affected everyone, and not even these firms got spared. It’s because of this fact that people are now looking for alternative channels of owning homes.
Renting is becoming expensive as days go by and this forced players in the market to come up with more pocket-friendly programs that would ease the burden. An example is the Rent To Own housing program that’s commonly known as a lease option. Most families have opted for this opportunity and thus owed properties in Houston, Texas. As a potential homeowner, all you need to do is to contact a seller who’ll then give you a contract allowing you to reside in his or her property for twelve to twenty-four months while paying rent. After this period, you have the liberty to either buy the house or not.
But just like any other program, this particular one has its own merits and demerits. Let’s start by looking at the advantages before delving into the downside.
- Easy to access
Everybody wishes to own a house, but banks are less willing to approve loans. Since 2008 when we experienced the global economic crunch, lenders are more cautious of who they lend to, and what property they are financing. The requirements drafted in the process also make it difficult for any individual even to consider applying. And this is the reason why this program gets highly appreciated. With rent-to-own, you don’t have to make a huge down payment before owning a home.
- It’s an opportunity to increase your credit score
The lease option gives you a chance to build your credit score in that you’ll have time as a tenant to organize yourself. The rent to own program enables you to live in your dream home with the possibility of owning it one day.
Cons of Rent to own Houston housing
- Renting is expensive
Some sellers might decide to take advantage of the situation and charge you more rental money because they want to pad their sale’s profits before the end of the term. Eventually, if you choose not to purchase the house at the end, you’ll have gone at a loss, taking into account the amount already paid. If you aren’t certain, you’ll be ready to purchase the property, just go through the usual renting channels.
- Lease cancellation
You must abide by the rules and regulations governing the rent to own contract because you can quickly get evicted. Ensure you pay your rent in time and maintain the property. If you’re going to be late in making payments, then call the seller and let him or her know in advance. Don’t wait until it turns into a cat and mouse game that describes a typical relationship between landlords and tenants.