How rent to own in Wichita KS works

The property market is not as buoyant as it was a few years ago; this is obvious with the number of homes with For Sale signs out front. This can problematic for a lot of people, none more than the family that has bought a new home and their old home has not yet sold. It may not be that there is a lack of interested potential buyers; it may simply be that mortgage money is tough to find. For many who have this problem they are turning to an option referred to as rent to own in Wichita KS.

Rent To Own Wichita Ks is also referred to as lease to own, the arrangement is rather like a car lease. The renter pays a certain amount every month and at the end of a specified period they have the option of buying the house. The period of the arrangement is variable but three years is the norm. The amount of money that the renters pay includes a potion which goes towards the down payment should the renter take the option to buy the home. This arrangement allows the owner to continue paying the mortgage using the rent.

Rent To Own Wichita Ks has both pros and cons. The owner is relieved of having to pay two mortgages at once from his own pocket and the renter, who may not yet be in a position to purchase a home may get into a house sooner than otherwise possible.

The process:

The seller first decides how much he will sell the house for and how much rent he will charge. Just as with any other arrangement, both the sales price and the rent are negotiable. Once an agreement has been reached, the parties enter into a binding agreement. The sales price of the house cannot be changed until the agreement ends, perhaps three years. It makes no difference what the general property market does, prices can rise or fall, the agreed price remains as is.

The renter then pays the owner an option fee, the rent and a rent premium. The option is an amount of money that is converted into down payment if the home is purchased and if not, the option fee is kept by the owner. The rent premium is the other component of the down payment, a portion of it is set aside for this purpose.

 

If you think entering into an arrangement where you can rent to own in Wichita KS you are invited to contact professional Home Buyers, with Professional Home Buyers you will qualify for the house you deserve, regardless of your credit.

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