Rent to Own in the U.S. and Abroad – From Luxury to Low Income
Renting to own a home, a process which involves the buyer composing a contract with the seller directly, moving into a home, and paying rent while making regular payments toward the purchase of the home, is slowly losing its status as an just an alternative way to buy. While in the past this option was often thought of as a practical way for those trying to increase their chances of selling their homes to avoid foreclosure and for those who could not qualify for a home loan, lease options are going through a transformation as buyers and sellers of all types discover the benefits of long term payments. T.W. Lewis, an Arizona home building organization and one of the leading sellers of Arizona luxury homes, is now offering rent to own deals to assist buyers in purchasing luxury homes over a period of time. Instead of putting down 20% on a home priced in the high $400,000s—a little less than $100,000—which is common for T.W. Lewis homes, the company allows buyers to rent luxury homes while they pay them off, putting 25% of rent towards the purchase prices of the homes. This makes purchasing a luxury home a viable option for many Americans who can afford to make a series a payments but not to drop a large sum of cash at one time.
Another benefit of renting to own a T.W. Lewis luxury home, besides living in the home while it’s being paid off, is the exceptional customer care and variety of quality appliances that come with the home. The company treats rent to own buyers as home owners, assisting them with any problems that may arise while living in the home, and all homes include elite appliances, pool service, and a 24-hour emergency phone line. Each home looking brand new when residents move in, completely repainted and with freshly shampooed carpets, if you can afford the monthly payments, renting to own a T.W. Lewis luxury home may be the most financially sound home buying option for you.
While renting to own is growing across the board in the United States, helping Americans of all financial brackets afford the homes they want to buy, this trend is also growing globally, making its way to Nicaragua, for example. In May 2012, the Inter-American Development Bank loaned Nicaraguan Banco de Finanzas S.A. $10 million to finance a rent to own program that will help low income Latin American families purchase homes. A leading problem for these low income families is that they cannot get financial backing for home loans because they have no way of documenting their incomes. This new rent to own program, which is estimated to help about 500 families buy homes, will allow Nicaraguans to rent homes for two years while paying them off, putting a portion of their rent money each month towards the purchase price of the home. As families successfully make regular monthly payments, they are able to build a solid credit track record with the bank, allowing them the ability to take out mortgage loans in the future.