RENT TO OWN HOMES DAYTON
Finding Rent To Own Homes in Dayton, Ohio
Have you been unsuccessful in finding rent to own homes in Dayton, Ohio or surrounding areas? With the Dayton OH real estate market booming for the last 5 years or so, I have seen very few rent to own homes in Dayton, Ohio. That’s not to say that tomorrow a seller somewhere in the Dayton area may not list his/her home “for sale” or “for rent” with an option for potential buyers or renters to purchase the property through a rent-to-own, land contract or lease to own program.
How Do Rent To Own Home Programs Work?
In a rent-to-own home arrangement, a buyer agrees to lease or rent the home for a set amount of time before exercising an option to purchase the property when or before the lease expires. The length of the rent to own option is negotiable, and there is no standard rate or time period, though the average seems to be about 2% to 7% of the purchase price. In some rent to own home contracts, all or some of the down-payment may be applied to the purchase price at closing. So, for example, with a purchase price of $150,000, a 5% down payment would mean the buyer would need to pay $7,500 up front-significantly less than a 20% down payment of $30,000.
Rent To Own Homes – Buyer Benefits
There may be a buyer interested in the real estate for sale but who, because of their credit history or other reasons, cannot obtain approval for a needed mortgage. The parties can enter into a sale by land contract so that the buyer makes monthly payments directly to the seller.
Rent To Own Homes – Seller Benefits
The seller does not receive the full purchase price up front, like the seller would if the buyer used a mortgage or paid all cash, but the seller may have more options for potential buyers. Also, the seller may be able to negotiate a higher purchase price on the property by offering a sale by land contract. The seller may also require and receive a large cash down payment.