The search for “rent to own homes near me” is very popular these days, even among buyers who are not necessarily in this mode of buying a home right away. Whether it’s because you’re saving up for a down payment, working on your credit or delaying your purchase until the market is more favorable, a rent-to-own home is an ideal option.
In the sections below, we’ll explain how our rent to own program works, the benefits, what to be cautious of, and how at the end help you achieve the dream of building your own home in Texas.
What Is a Rent to Own Home?
A rent-to-own home is a house you can buy through a rent to own agreement for a set period of time, with the possibility to buy the home before the lease runs out. Usually, a portion of your monthly rent is applied to the future purchase price. This method works for you if:
- Want to lock in a property before fully committing
- Need time to secure financing
- Are working on improving their credit score
- Are waiting to sell a previous property
Unlike traditional renting, rent-to-own allows you to live in your future home as you work toward buying it.
Benefits of Rent to Own
1. Live Before You Buy
One of the best things about renting to own is the opportunity to try out the home, neighborhood and community before making any commitment to purchase. You’re not simply judging the home and property by a sample day in November, but seeing how it feels at various times of year, and ensuring it genuinely fits.
2. Time to Save
If the idea of assuming a mortgage is still a little out of reach, rent-to-own allows you to save up, and upgrade your financial position, while living in the place that you will eventually call home.
3. Build Equity Early
Part of each rent payment may be credited toward your down payment or purchase credit. So, you’re building equity in your future home even as you rent.
How to Find Rent to Own Homes near You
To begin, you can look online for platforms that focus on lease-to-own listings in your city or town. Local real estate agents may also be able to help you locate rent-to-own properties that are hard to find in the general market.
Plus, remember that rent-to-own isn’t always about taking what you can get. Some buyers use it as a steppingstone to custom-building their own home. If you’re ready to buy, you might be considering options such as the best custom home builders near me.
From Rent to Own to Building Your Dream Home
It is also taken as a temporary situation by many people, most of which have a dream of breaking out and building their own home from the ground. It provides you the total add on control for layout, design, and message.
So you’re looking to buy a new home, and you come to the realization that you’re going to need to invest in some land before you can start building your house. If you’re dreaming of building your future home in the Lone Star State, it’s a good idea to start by learning where to buy land in Texas. There are a number of cheap land options in Texas and the zoning laws are fairly relaxed.
Rent to own vs Semi-Custom Building
Though rent-to-own enables you to purchase an existing home, building brings personalization. If you aren’t quite ready for a 100% custom-built home, take a look at a Semi-Custom Builder. With a semi-custom home, you can select from a set of pre-designed floor plans with the ability to make adjustments, providing a blending of the affordable and the customized.
The rent-to-own property is a great stopgap, and if it’s not your ideal long-term dream house, you’ll have a decade or more knowing what to look for in your own new construction.
Transitioning from Rent to Own to Full Homeownership
At the end of your lease, you generally have the option to buy the home at an agreed-upon price. If you want to take a different path, you can still use your experience. Many Texas buyers rent or “temp” until they find the best Texas home builders for their forever home.
Whether you value energy efficiency or smart home technology, or are looking for farmhouse style, Texas builders have something to suit every lifestyle.
Important Considerations in Rent to Own
Before signing a rent-to-own agreement, consider the following:
- Contract Clarity: Ensure the lease and purchase terms are clearly outlined.
- Inspection: Have the home inspected just like a traditional purchase.
- Credit Terms: Understand how much of your rent goes toward the purchase.
- Purchase Timeline: Know the deadline for exercising your purchase option.
After you have the basics down, you will be better prepared to make smart choices about whether to buy or build.
Not Sure If Building or Buying Is Right for You?
If you need help deciding if rent-to-own, an existing home, or building is your next step, check out expert advice like our article on How to Choose a Home Builder. It will vary depending on your lifestyle, schedule, budget, and if you are willing to sacrifice one for the other.
Quality Is Key—Whether Buying or Building
No matter if you buy our rent-to-own homes or build your own the quality is something you should never negotiate. Invest with the Best Quality Home Builder and enjoy years of cash-flow. A good builder is one who emphasizes craftsmanship, energy efficiency, warranties and long-term value.
Financing Your Dream Home
When you’re ready to transition out of renting to own, finding the right mortgage is key. You also could qualify for a Loan to Build a House on My Land and make the home you’ve always dreamed of a reality. In most cases these loans have you cover the cost of the land, permits, construction labor and building materials incrementally, as you hit specific construction milestones, making it easier to transition from blueprint to move-in day.
Final Thoughts
Rent to own homes near you can be a great choice if you are looking to become a homeowner but haven’t quite decided on the way in which you will get a mortgage. It gives you time, flexibility and potential equity while you learn what you want in a forever home. And when you’re prepared, Texas has the land, the developers and the credit to make your dream home a reality.
If you decide not to close on the rent to own home, you may under some circumstances lose the money you put down on the house and the option money you paid for the right to purchase. Whatever you decide, however, you are moving closer to home ownership and gaining greater stability in your life.