There are many different reasons that you might want to rent to own a house in Connecticut. You might not have the credit score or income needed to get a mortgage loan right now, but you may have a good job and can make the payments on your new home. You may also be looking for an alternative to renting an apartment because you would like to own a home instead.
When you decide that you are ready for a rent to own home in CT, there are several things that you should consider before making an offer on one. The pros and cons of rent to own homes will help you determine if this is the right decision for your family.
Pros of Rent To Own Housing in Connecticut
There are many benefits associated with rent to own housing in CT, including:
Lower down payment requirements/no down payment
In some states, such as Connecticut, you can avoid paying a down payment on your rent to own home. This can be advantageous if you have little money saved up or have other debt obligations that require repayment first.
No credit score check
Rent to own housing in CT don’t require a credit check, so even those who have bad credit can qualify for rent to own homes.
Opportunity to build equity
Homeownership is one of the best ways to build wealth over time because it provides access to tax deductions and equity growth potential (the difference between the value of your home and what you owe). Renting gives you none of these benefits.
Opportunity to build credit
Rent to own homes allow you to build or rebuild your credit because your rent payments are reported to the three major credit bureaus. If you have bad credit, this is an advantage over traditional landlords who may not report your rental history to the bureaus.
Ability to get a mortgage
Once you’ve built up your credit and saved enough money for a down payment, you can use rent to own homes as stepping stones to purchase your own home. You may be able to get a better deal on a traditional mortgage if you have rent-to-own history on your credit report.
A chance to get into homeownership
Rent to own homes can give you the chance to build up your credit and save for a down payment. This will allow you to eventually purchase your own home with a traditional mortgage.
In general, rent to own homes are a good way to get into homeownership. If you want to get started with rent to own homes in Connecticut, take a look at our Connecticut rent to own homes listings or check out our website for more information on how the process works and where to find properties that fit your needs.
Cons of Rent To Own Housing in Connecticut
Rent increases each year by 3 percent or 5 percent depending on whether it’s a fixed-rate or adjustable-rate mortgage (ARM). This means that if your income increases over time, your monthly payments will increase too — which could make it harder for you to afford the house if your income doesn’t keep up with inflation rates and home price increases over time.
If you can’t afford to buy the property at the end of your agreement, you may have to pay up to three months’ rent as a penalty. This could be a bad deal if you’re only renting for one year or less and don’t plan on staying in the home indefinitely.
Property owners can also set a cap on how much rent you’ll pay throughout the agreement. If home prices increase substantially in your area, this could mean that you’re paying below market value for your rental property.
Have More Questions About Rent To Own in Connecticut?
If you’re interested in learning more about rent to own homes in Connecticut, or if you have questions about the process, visit our FAQ page. You can also contact us directly at any time. Our agents are always happy to answer your questions and help you find the right home for you.