If you are currently renting a home or apartment, you may wish to purchase your first home. If so, a rent to own option might be an ideal route to take. Many rent to own programs for first-time buyers exist to help renters transition into homeownership. Taking advantage of such a situation allows you to gradually take on the responsibilities of purchasing a house.
Rent to purchase options are sometimes provided through federal or state housing assistance programs.It is important to explore each of the choices available to you before you establish a rent to buy agreement, as well as understand the requirements and limitations of certain rent to own agreements.
If you do not want to rely on private owners with houses for rent, there are several government agencies that may be able to help you buy a home. Oftentimes, you can contact these agencies and ask questions like “How can I find rent to own homes near me?”
One option is to speak to your local housing agency about Section 8 rentals. Section 8 is a federal program that helps families with low incomes afford the cost of rent. The Section 8 Housing Program is a division of the Housing Choice Voucher Program.
Section 8 provides vouchers, which represent a certain percentage of the rent that you need to pay. Then, you give the voucher to the landlord and pay the difference in cash.
There aren’t many Section 8 houses for rent, so you may prefer owning your own home instead of waiting around. The Housing Choice Voucher (HCV) homeownership program allows you to use vouchers to make partial mortgage payments to lenders, rather than to landlords. That way, you can enjoy the feelings and freedoms of owning your own home.
Another advantage of home purchases made through the HCV Program is the overall cost. Rent to own apartments or rent to own home loans are usually cheaper because they only factor in property costs.
Typically, landlords who rent their properties charge more than standard mortgage payments cost. Landlords typically need to compensate for the following:
- Repairs and fixes
- HOA fees
Rentals provided by landlords are not regulated like lease to own homes purchased through the HCV programs. Landlords can set their own rental rates. Sometimes, those rates are influenced by the geographic locations of the rentals. They are also impacted by the specific desires of each landlord.
If you do an online search for “rent to own houses near me,” you may also notice other options. For example, you can request one-time lump sum grants from HCV rent to own mortgage lenders instead of receiving vouchers each month. You can also contact the U.S. Department of Housing and Urban Development (HUD) for rent to own assistance.
Alternatively, you may have other state housing programs available to you. The programs each state offers are different, but they typically provide similar services designed to make first-time homeowners more comfortable and secure in their decisions.
Among the most common are:
- Utility Payment Reduction Assistance
- Borrowers’ Rights Information
- Insights Into Local Home Purchasing Assistance Programs
- General Counseling for First-Time Home Purchasing