Don’t overlook the advantages that come with entering homeownership through the rent-to-own sector of real estate in the Chicago market. When you rent to own in Chicago, the arrangements usually last a year or two before you purchase the property outright. This is appealing to buyers who wouldn’t necessarily be successful in acquiring a traditional mortgage at this time. The asking price may be set higher, because of the opportunities offered to buyers with little down payment, credit issues, or simply wanting a trial run. Additionally, the price is slightly higher when you rent to own in Chicago because the seller is willing to wait, in order to make a larger profit overall.
When you rent to own in Chicago, you also know your neighbors likely have more of a financial and emotional investment, than the average renter would. They’re invested in the neighborhood itself, as well as their own property and in being good neighbors. There is value in being located in a community with planned recreational amenities and schools are usually near for families.
We’ll take a look at these 5 quick facts buyers should know about rent to own in Chicago.
Because you can live in the house without a lifetime commitment with a “lease-option” contract, some buyers value the ability to try before buying. Some buyers choose the rent to own option in Chicago because they are willing to walk away, to be certain they’re happy with the location in every way possible. They’ve likely had nightmare experiences with neighbors or other issues with homeownership in the past, which makes them hesitant to jump with both feet into a new home. Be aware, deciding not to take the option to purchase at the end of the contract, means forsaking your deposit and any designated funds that would have applied towards your down payment,
For buyers with the expectation of positive financial growth within the next year or two, rent to own in Chicago is most agreeable. Especially if you’re committed to relocating to a certain home or neighborhood that would otherwise be out of reach until the end of the contract, and you’d like to skip all the hassles of moving again.
Rent to own opportunities in Chicago allow those who would otherwise be restricted to being renters, the chance of owning their own property. Circumstances beyond anyone’s control can sometimes bring credit scores below the level that it takes to qualify for homeownership. With the time allowed on the contract, you can work towards the ultimate goal of repairing your credit score.
No Credit History
Rent to own in Chicago is great for first-time buyers, or those who haven’t yet built a credit history, yet are ready for homeownership. Having no credit history can be nearly as detrimental to the dream of homeownership as having bad credit. The time built into the rent to own arrangement allows some time for you to build up a credit history strategically, improving your chances of qualifying for a mortgage loan at the end of the rent to own contract.
Making the Down Payment
Due to the nature of renting to own, the buyer has an advantage of an agreed-upon portion of their rent applying towards the down payment. Additionally, given the standard time frame of two years for a rent to own in Chicago, you’ll be able to build additional savings, towards a larger down payment on a traditional loan.
We here at Chicago Home Buyers are happy to provide even more facts buyers should know about purchasing a rent to own property in Chicago. Send us a message if you have any questions about the process or call (312) 300-2043 today to learn more!