Advantages of Rent to Own
Rent to own is a great option for people who want to buy a house but don’t have the down payment, closing costs or savings. It allows you to get into a home without having a huge down payment and can be used as an interim step if you are saving up for a home purchase. In addition, it can help buyers who are unable to qualify for traditional financing due to their credit score or income level.
Rent-to-own agreements typically allow renters (buyers) the right of first refusal when selling the property is on the table later in its lifecycle (typically after five years). This means they can purchase the property at any time during that period at fair market value, as long as they’re willing and able!
Disadvantages of Rent to Own
You might not be able to afford the home you want. You have to pay rent, but you don’t get equity in the home.
You can’t get a mortgage without a down payment, so if you have no savings and need one now, this isn’t an option for you.
If you’re unable to make payments on time or keep them current when they’re due, it could result in fees like late fees or repossession of the property by its owner (your landlord).
What kind of houses are available as rent to own or lease purchase?
Rent to own homes in Illinois are available for all types of dwellings. This means you can find a home that’s ready to move in, turn into your new home and move on from there. It’s also possible to find rent to own homes IL that aren’t quite finished yet, so you can make them exactly how you like them before taking ownership of the house.
It’s even possible to get a place where everything is done but some minor details like final kitchen or bathroom upgrades that could be covered if they were added onto the purchase price or financed separately by the owner.
If you’re looking at a brand new development, there will most likely be some kind of rent-to-own program available as well because developers want people who are interested in living in their community right away rather than waiting until after it has been built out completely with all amenities fully functioning.