- Tenant Buyers can “check out” the neighborhood before committing to a 30-year mortgage.
- Tenant Buyer Families can move in quickly to enroll children in their desirable local school district.
- Tenant Buyers with problematic credit have time to improve their financial situation.
- The Landlord/Seller enjoys a Tenant Buyer who has good reason to maintain the property in excellent condition.
- The Landlord/Seller receives monthly payments that can exceed the payment amount for the mortgage.
- The Landlord/Seller is exposed to a larger potential market by including those without perfect credit.
If you have spent time driving around Pittsburgh PA or browsing Craigslist or other online resources, you may have seen advertisements that read, “Own a home for $500/month. No credit check!”
While it seems too good to be true, local rent-to-own homes are a viable option that many Pittsburgh residents are taking advantage of at increasingly higher numbers than in the past.
In any business there are a few shady bad actors who are unethical and create a bad impression for those that are doing things right, like us! However, renting to own homes via lease option ARE NOT A SCAM, and if done properly, can result in excellent opportunities for people to improve their circumstances and earn their way toward a path to home ownership, especially if your financial situation has prevented you and your family from getting a home loan recently. You can find hundreds of informative articles online from extremely reputable resources supporting the fact that rent to own homes (also called a lease options) are not only legitimate, but also offer a quick, easy and convenient way to working your way into owning a home.
Lease Options or the rent to own process is a simple concept:
- The Tenant Buyer and Landlord Seller sign and agreement on the cost of the home, the monthly rental payment, and how long the buyer will have to purchase the home.
- The Tenant Buyer moves into the home and begins paying the monthly rent. As this is going on, the buyer is working to rebuild his or her credit, or possibly secure financing to purchase the home using traditional means… and the buyer can feel that same sense of pride that home owners feel because they are working toward that goal of home ownership actively.
- At the end of the term, the Tenant Buyer has the option to buy the home at the price agreed upon in the initial agreement.
While rent-to-own homes in Pittsburgh are a valid business venture, there are many things that buyers must consider.
Purchasing a home is one of the most complex financial decisions that Americans make every year, and renting to own is no different. There are several potential pitfalls:
- Unlike traditional ownership, if the Tenant Buyer / Renter misses a payment, the entire contract *could* be voided. It is very important read the agreement, especially the fine print, and ask the Landlord Seller or property owner about the default clause and how that is handled. Highly reputable real estate experts like the team at Pittsburgh Cash Home Buyers LLC will provide this information readily and answer any of your questions.
- If you decide not to purchase the home, or are unable to secure financing, any “credit” (if applicable) you may have earned will likely be forfeited or lost.
- The upfront “option fee” or down payment for the rent to own agreement is almost always a non-refundable fee. You want to be sure if you signing on the dotted line, that this home is a good fit for you and your family, and is the right choice for you and your loved ones.
- Unlike traditional rental agreements, in a rent-to-own situation, the renter is responsible for repairs.
While renting to own is not without risk (and no financial decision is risk-free), there are a ton of advantages:
All things considered, not only is renting to own a home in Pittsburgh definitely not a scam, but a legitimate option for both buyers and sellers. If you want more information on renting to own a Pittsburgh house, the process, and our available list of local Pittsburgh rent to own houses / lease options, click the big link below.
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