Home Ownership Trends Are Changing… Read On To Find Out How These Trends Might Make Owning A Home In San Antonio Even Easier…
Mortgages based on credit scores were once the primary way of buying a house, but these traditional methods of purchasing a home are becoming less common than in years past. The American Dream is shifting and the notion of home ownership (while still strong) is evolving…
As banks are becoming tighter with their loan approval process, and as Americans are still digging out of the recession (and possibly any credit issues they may have fallen into during that time), many are turning to other means of purchasing a home…
… perhaps because they don’t have the credit, maybe because they no longer have trust in banks anymore, or possibly even because they are learning that there are other options available now to buying a home.
Renting houses and apartments has increased significantly in recent years… and renting-to-own a house (or Lease Option as a lot of people call it) has become a more popular way for families to buy a local San Antonio Texas house directly from a seller (after a rental period that usually lasts 12-24 months or so), without the strict qualification process offered by banks.
There are many pros and cons of rent to own housing in San Antonio Texas, which I will cover in this article.
Remember to read each detail of any contract before you sign, and consult with a financial advisor or rent-to-own expert if you have any questions, or are confused by any part of the process.
Pros of Rent to Own Housing in San Antonio Texas — Why It Can Be A Better Option
The largest hurdle to owning a home is usually qualifying for a loan for the house.
Lenders have become more and more strict with income and asset requirements to approving loans ever since the recession, and with the current state of the economy being what it is, many Americans just cannot meet these unrealistic expectations. In a rent-to-own situation however, the seller can determine their own guidelines for approving the contract, and they are often much more reasonable than traditional banks.
What this means is that there’s usually a much lower upfront payment required to get into the house… and you don’t have to deal with the complex process of qualifying for a bank loan.
Time to Improve Your Credit
As you’re renting to own a home, you have the opportunity (usually 1-3 years or more) to repair your credit so you can get a bank loan to buy that house at the conclusion of the rent to own / lease option agreement period.
Also, while you’re working on your credit, you’ll have the opportunity to live in your future home, and once the term has ended, you’ll have saved both a down payment and hopefully improved your credit score to get a traditional mortgage from a bank.
Cons of Rent to Own Housing – Some Drawbacks
Rent Can be More Costly
In a rent-to-own situation, including here in San Antonio and all around Texas, the seller usually charges more for rent since it comes with the option to purchase the house opposed to renting an apartment. If a buyer is unable to follow through with the purchase of the home at the end of the term, they will have spent more to live in the home without the benefit of purchasing it.
So you need to be absolutely sure that you’re serious about potentially purchasing the house at the end of the rent to own agreement… otherwise you’d be better off just renting a house or an apartment as you normally would.
Buyers must also be aware of the risks involved with lease cancellation, eviction, and other factors when they are considering a rent-to-own home. If a buyer is late on payments or breaks the lease in any way, the option to purchase the home may be lost, and they will forfeit all fees and additional rent that they’ve paid for the option to purchase the home at the end of the term.
The same goes here as in the previous drawback… if you’re wanting to rent to own the house… then be serious about it and use this as an opportunity to improve your credit and earn your way into a great home you’d love to own.
For many San Antonio Texas residents who can’t get a traditional loan from a bank to buy a house, the Pros and Cons of Rent to Own Housing In San Antonio are clear…
If you don’t have the credit or a huge down payment… but still want to experience the feeling of “ownership” while you work on buying that house… looking for great rent to own houses San Antonio may be the preferred choice.
But if you’re not fully committed to improving your financial situation, your credit, etc… then doing a rent to own may not be the right fit for you.
Renting to own is a viable option for many Americans, though. By knowing exactly what you’re getting into, you have a great opportunity to buy your dream home without having to meet the often unrealistic requirements set by traditional mortgage lenders.
Have Questions On How Our Local Rent To Own Program Works?
If you have any questions about how the rent to own / lease option process works… we’re here for ya!
Just click the link below to see our available properties… or connect with us by calling us at (210) 807-6567 or through our contact page on this website.