Are you considering rent-to-own as an option for purchasing a new home? If so, you’re in luck. Rent-to-own is becoming increasingly popular, and for a good reason. We will discuss some of its biggest benefits to help you decide whether it’s the right choice.
1. It gives you time to save up for a down payment
With a traditional mortgage, you must have a down payment of at least 20%. However, with rent-to-own, you can put as little as 0-20% down with rent-to-own. This allows you to keep your money in savings and use it for other purposes, like repairing your credit or saving up for closing costs.
2. It helps you build equity
Every month, a portion of your rent goes towards the home’s purchase price. This is known as building equity. By the end of your lease term, you will have built up a significant amount of equity in the home, which can be used as a down payment on a new home or to get a better interest rate on a mortgage.
3. It gives you time to improve your credit score
If you have bad credit or no credit, rent-to-own is a great way to build up your credit score. Your credit score will gradually improve if you make your monthly payments on time. This will give you a better chance of qualifying for a mortgage.
As you can see. There are immense benefits offered by rent-to-own. Contact your local mortgage provider today if you require further assistance or wish to learn more.
