| If you are looking at a rent to own home in Michigan, | | | | too small for a growing family, or that the |
| you are certainly not alone these days. Because of | | | | neighborhood doesn't fit your lifestyle requirements, and |
| the poor state of the Michigan economy this is | | | | then you can pass on exercising your option. |
| becoming an increasingly popular option, for both sellers | | | | On the other hand, if you do a lease purchase home in |
| and buyers. | | | | Michigan then you are obligated to buy when the |
| In fact, one of the most popular areas for doing a rent | | | | option term ends. It will depend on negotiating with the |
| to own home in Michigan is in Grand Rapids. | | | | seller before signing the terms of the contract. |
| Rent to own is also sometimes referred to as a lease | | | | One last potential pro for the buyer when living in a |
| purchase or a lease option....because the tenant-buyer | | | | rent to own home in Michigan is that if the economy |
| is leasing the home but has an option to purchase the | | | | turns around and the property appreciates while you |
| house at an agreed upon price -- or, in the case of the | | | | are living in it, you may have a good sized gain by the |
| lease purchase, must buy the home. | | | | time you have to decide whether to exercise your |
| Lease Purchase Home in Michigan | | | | option. |
| There are many reasons why someone would want | | | | Obviously, if the home does appreciate quite a bit, and |
| to lease purchase a home in Michigan. Many individuals | | | | you are then in a position to purchase it because of |
| or couples can afford to make monthly home | | | | improved credit and other financial factors, then it may |
| payments because of a steady income but either do | | | | make good financial sense to do so. |
| not have enough to put down for a typical down | | | | On the other hand, if the property declines appreciably |
| payment or cannot get a traditional loan from a bank | | | | in value then you can simply choose not to exercise |
| due to bruised credit. | | | | the option, unless you happen to love the property and |
| Therefore, if you decide on a rent to own home in | | | | do not wish to move. |
| Michigan, you can get into a nice house with a small | | | | Rent to Own Home in Michigan -- Seller Side Pros |
| payment -- often referred to as option consideration -- | | | | Now, let's discuss the benefits for the home seller. In a |
| and you can even do so with damaged credit, believe | | | | slow economy, such as the one Michigan is currently |
| it or not. | | | | facing, homes are difficult to sell. Potential buyers just |
| How do we know this? Because as real estate | | | | don't have the sufficient savings to put down or |
| investors we do lease options and part of what we | | | | cannot get the lender financing they need to buy your |
| do is help potential home owners improve their credit | | | | home. |
| score. | | | | But if you are desperate to sell -- maybe because |
| This credit repair fits perfectly with people looking to | | | | you've purchased another house and are now making |
| rent to own because it allows us to get people into | | | | two mortgage payments, or because you or your |
| properties they want to own, which, in turn, helps them | | | | spouse has lost your job, or perhaps have been |
| improve their credit further because they are now | | | | transferred out of state -- you can have someone |
| making consistent home payments that are reflected | | | | take over your monthly mortgage payments by |
| on their credit records. | | | | allowing your property to become a rent to own home |
| In addition, during the time the tenant-buyers are in the | | | | in Michigan. |
| home, we can often assist that person or couple in | | | | Another big advantage is you can almost always |
| helping them improve their credit so that by the time | | | | command above market rents when you do a lease |
| they are ready to exercise their option and buy the | | | | option....and can often get near FMV (fair market value) |
| property, they will have the credit score they need to | | | | for your home when you negotiate the price for the |
| obtain a conventional loan from a bank. | | | | option/purchase. |
| In short, we help people who are sick of throwing | | | | This is because your potential buyers are not in a |
| away money from renting. | | | | position to get traditional bank financing to purchase a |
| Rent to Own Home in Michigan - Buyer Side Pros | | | | home and, therefore, many will be willing to pay closer |
| Besides being able to get a home with subpar credit | | | | to the market value of your property. |
| and without needing a lot of money for a down | | | | Another significant benefit if you decide to market your |
| payment, there are other advantages for buyers of a | | | | property as a lease purchase home in Michigan is that, |
| rent to own home in Michigan. | | | | generally speaking, the tenant-buyers will treat the |
| For example, when you opt for a lease purchase | | | | home respectfully. This is simply because if they are |
| home in Michigan, you feel like you are a home owner | | | | going to buy it in the near future, they are going to |
| because you know you can exercise your option and | | | | care for it as if were their own. |
| buy the house you're living in. | | | | Lastly, you as the seller also get to keep the property |
| Also, rent to own deals entail something called "rent | | | | income tax deductions during the option period since |
| credits" that the tenant-buyer pays each month and | | | | you are still on the mortgage. Talk to your accountant |
| which are applied to the down payment of the house | | | | about this. |
| when the option is exercised. This gives the | | | | Of course, once the option is exercised then the |
| tenant-buyer the feeling that they are making | | | | tenant-buyer becomes the owner and after that all |
| payments for eventual true ownership of the property. | | | | potential tax deductions then become theirs...but you |
| Another advantage for the buyers in the case of the | | | | have accomplished what you set out to do: sell your |
| lease option is that they get to live in the home before | | | | home in a slow economy for a good price. |
| deciding whether they want to buy it or not. You may | | | | A lease purchase home in Michigan can truly be a Win |
| love the house from the moment you saw it, but after | | | | Win scenario for seller and buyer alike and that's why |
| 12 or 24 months of living there you may decide that it's | | | | they are so popular nowadays. |