This can be a good option to consider if you no longer want to rent, but you’re still not quite ready yet to buy.
Disadvantages of rent-to-own
Your contract may not be ironclad, and there may be certain provisions that don’t allow you to purchase the home at the end of the term. For example, your landlord might lose the home through foreclosure, or you might lose your rent-to-own rights if you’re late with rent payments. If you’re ever unsure about the terms and conditions of your rent-to-own agreement, it can be helpful to have an attorney look it over before you sign anything.
If a portion of your rent is going towards your home purchase, you might actually be paying a little bit more than the market rent in your area to make up for this. If so, that money goes to waste if you don’t end up purchasing the home for whatever reason. And there are still no guarantees that you will qualify for a mortgage when the time comes to purchase.
It’s important to be on the lookout for rent-to-own scams. While rent-to-own is a legitimate practice, scams are not uncommon either, so it’s crucial to be on guard.
Are you tired of renting, but don’t have the money to purchase a home? Qualifying for a mortgage can be difficult without a down payment and decent credit score. But if you’ve been receiving annuity payments, you may be able to become a homeowner by receiving your cash upfront in the form of a lump sum. By selling your payments to Peachtree Financial Solutions and receiving your money now, you may be able to eliminate debt, improve your credit score, and have the money needed for your down payment, all of which are needed to take out a mortgage. Alternatively, if you’re hoping to avoid taking out a loan completely, you may be able to buy a home with cash. This is dependent on a variety of factors, including the value of your future structured settlement payments, how many of them you sell, and the price of the home you’re looking to purchase. Contact Peachtree Financial Solutions today for more information and to receive your free quote. We have helped many people reach their goals of owning a home, and we may be able to help you, too!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.