If owning your own home is a dream of yours but your current credit or financial situation just won’t let you buy right now, that’s where the right Utah rent to own program comes into play. You first pay a nonrefundable Option Fee that will be applied to the final purchase price of the home. In this blog post, you’ll read about what it means to rent-to-own and how it works. For sellers like us, the rent to own opens up the potential “buyers pool” so we can help more people get into great homes. While these arrangements are not common, they appear from time to time and may appeal to you if you are not quite ready to buy a home in a traditional manner. Advertisement “For a buyer, it might be that they need to build credit, accumulate time on the job, or save money for the down payment and closing costs,” said Ron Humes , a realtor based in Lexington, Kentucky. Rent to own on a house works when a tenant leases a house from a landlord and buys it before the end of the lease. How Does Rent To Own Homes Work? You will not own the item until you have met the conditions in your rent-to-own agreement. If not, join our Early Property Alert List below to get email alerts quickly when we have new rent to own houses in the Utah area available. You should understand the nature and terms of the contract properly before signing it. We set you up for success by taking extra steps to protect you and ensure you are able to finance at the end of your term. Rent To Own Real Estate In Utah – What If I Have Bad Credit Or No Credit? When you rent a home, maintenance and other upkeep is generally the responsibility of the landlord. The agreed and signed price and rent is settled and locked during the entire rental period of time, which is usually between one and three years. Rent to Own Maintenance Requirements. Utah Rent-to-own is a popular option among prospective homebuyers because it is essentially a neighborhood “test drive.” Under the terms of a Utah rent-to-own option, you can live in the area you think is the best long-term fit for your situation without getting immediately locked into a 15- or 30-year mortgage commitment. In this kind of arrangement, the renter rents a house from the owner of the house and pays monthly rental fees for living in the house. Of the monthly rent paid to the owner, a fraction can sometimes go towards down payment of the house depending on the local laws and guidelines. In a rent-to-own agreement, you (as the buyer) pay the seller a one-time, usually nonrefundable, upfront fee called the option fee, option money, or option consideration. When one goes for the rent to own homes, it is a chance for them to start building equity for their new home immediately. A rent-to-own plan is typically an agreement for the rental of an item. How Does Rent To Own Homes Work? For example, market rent for the property you are renting to own is $1000.00; you and the seller have agreed that you are going to pay $1400.00 each month. Search all the latest Rent to Own Homes in Utah. How Does Rent To Own Work - If you are looking for a new location to move into then our rent to own database can help you find a place that is right for you. For buyers, it lets you work toward home ownership and have that sense of pride you feel when you own a home. Rent to Own (also called a Lease Option) or Seller Finance is perfect for people who want to stop throwing their money away on rent, month after month, and instead want to start building equity in their new home immediately. As long as your rent is paid, you have a place to live. So during that whole period… you should be really working to improve your credit… save up money… and work with a local Utah mortgage broker or bank to get pre-qualified BEFORE the rent to own agreement expires. You should understand the nature and terms of the contract properly before signing it. Because you’re paying for the ability to purchase that house at the end of the agreement and you’re locking that house down so others can’t purchase or rent it during the entire term of the agreement. The surplus of rent that is being paid above market rent will be going towards the down payment of a house. While this high-tech trend is relatively new, Provo has a decades-long reputation for innovation, academia and industry. LEGAL DISCLAIMER: Rent To Own Homes in Utah refers to properties for sale with lease-option financing or seller financing. Saint George, UT 84770 Sale Type: Rent-To-Own 6 Beds, 3.5 Baths. The rent to own homes in Utah is the perfect choice for individuals who are tired of having to pay money every month regarding rent. There is an option fee that the buyer pays the seller. A rent to own agreement is typically straightforward, however, all of the variables can be negotiated. In this kind of arrangement, the renter rents a house from the owner of the house and pays monthly rental fees for living in the house. Just like in any other way of buying a house in Utah, there are mutual pros and cons for both the buyer and seller. Homes For Rent By Owner In Utah – Rent-To-Own Step-By-Step. Let us provide you with a list of available rent to own homes in Utah. Rent to own a house is also called lease to own house (or a whole slew of other phrases… like “lease option”, etc.). You first pay a nonrefundable Option Fee that will be applied to the final purchase price of the home. There are more than 3 rent to own homes currently on the market. The monthly rent is usually a bit higher with a rent to own / lease option agreement than if you were to just rent a house normally. Sometimes applying part of the monthly rent to the purchase price is now against the law because of a law passed by Congress called the Dodd Frank Law. Rent to Own (also called a Lease Option) or Seller Finance is perfect for people who want to stop throwing their money away on rent, month after month, and instead want to start building equity in their new home immediately. You have probably seen advertisements for rent-to-own properties at one time or another. With Rent To Own Homes In Utah - Northern Realty, we continually purchase new properties in good neighborhoods, often times fully remodel them, and sell the on a rent to own basis to Utah families. Since you’re going to be purchasing the home, most sellers have few concerns over pets or how you want to spruce up the home. So we can be flexible often times if you need an extra few months to get things lined up financially and with the bank to close on the house. Rent to Own (also called a Lease Option) or Seller Finance is perfect for people who want to stop throwing their money away on rent, month after month, and instead want to start building equity in their new home immediately. Here’s how it works…. Your option fee entitles you to be able to purchase the home at any time throughout the option period (usually 24 months) at the lowest market price we can negotiate on your behalf. This option of buying a house in Utah with a rent to own agreement is very good for buyers who would otherwise be unable to purchase a house or whose credit score wouldn’t meet the required threshold for a mortgage. These can include an additional amount to pay if you want to purchase the item. Owning: When you own, you take out a mortgage from the bank and they give the money to the seller. Towards the down payment high-tech trend is relatively new, Provo has a reputation. 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