If you are still unsure about how rent to own homes in Kentucky work, it is critical that you understand why it is one of the better ways to beat the recession and buy a property even if you have a bad credit rating. Renting to buy a house is a bit of a misnomer. Renting to own houses is a process that allows you to pay rent on a property for a set period of time and then purchase it. However, the process is not limited to this concept alone; it is more of a procedure that represents lease with a twist. You will have the option to purchase a home at any time during this process.
A portion of your rent is treated as a down payment towards the value of the house in rent to own homes. It works similarly to a savings account, and the deposit is known as a rent credit. Here, it is more of a seller than a landlord situation, with the seller preferring to sell the home rather than lease it. There is a purchase option, which states the price you will have to pay for the home, and it is mentioned right at the start of the lease.
You must bear the costs of repairs and renovations to the home that you will own in the future if you rent to own. This is simply because you want to be the owner of this house, and you are treated as such here. Because it includes the down payment on the property, the rent you will have to pay for the home will always be higher than market rates. This option is feasible because you will be able to build equity while preparing to buy a home.
There is a down payment method called “option consideration” that is required in rent to own homes KY agreement. This option secures the purchase option, and the deposit will be applied to the purchase price as a down payment. Even if you choose to opt out of the procedure to buy the house by the end of the lease period, the down payment you provide in the rent to own homes option is not refundable. You may be required to pay the first month’s rent as well as a security deposit when renting to own a home.
