Rent to own homes in Atlanta are an increasingly popular way for buyers to get into the market without having to come up with a full down payment. The process is simple: you sign a lease agreement to rent a home and make monthly payments until you’re ready to buy it.
The rent to own model has been around since the 1970s, but it’s only recently grown in popularity. It can be especially helpful for people who don’t have much money saved up or who need more time to pay off debt like student loans.
If you’re thinking about buying a home from countless Atlanta rent to own homes, here are some tips to help you make the right choice.
1. Don’t expect to be able to move into your new home immediately. Most rent-to-own agreements are structured so that the buyer will have to live in the house for at least six months before they can buy it.
2. Be prepared to put down a large down payment. This is because most rent-to-own agreements require that the buyer put down at least 30% of the purchase price of the home up front, though some require as much as 50%.
3. Understand that you won’t get any tax benefits from paying rent on a home you don’t own yet. You’ll have to pay taxes on all of your rental income as though you were renting from someone else and not making payments toward buying your own home.
4. Make sure that you have enough cash available for repairs and maintenance expenses, since these costs may come out of your pocket during this time period even though you don’t own the home yet!
5. Make sure that your credit score is high enough before applying for any type of loan.
