Do you want to become a homeowner but you’re not quite ready to take out a loan? The good news is that you can still buy a property and move into your house right away! In our latest post, you will learn how to buy a house without a mortgage in Milwaukee!
If you have desires to buy a house without a mortgage in Milwaukee, you’ll either have to come up with the cash up front or look into alternative ways of funding the property. When you work with a homeowner who will allow you to rent to own, there can be benefits for everyone involved. Keep reading to learn more about the benefits, how the process works, and what to watch out for when using a rent to own contract to buy a house without a mortgage in Milwaukee!
Benefits For Buyers
Buyers will receive a number of great benefits when using a rent to own agreement to buy a house in Milwaukee. A few of these benefits include…
Try Before You Buy
When you use a rent-to-own agreement to buy a house in Milwaukee, you’ll be able to really get an idea of what owning the home will be like, before committing to the sale. Once your lease-term is up, you’ll be able to buy or walk away if you deem the property isn’t right for you. You’ll just have to watch for penalties or the loss of your option fee.
Time To Save
When you buy a home, you will need a deposit, but you must also count on a lot of other expenses. You shouldn’t forget costs of a maintenance, moving, closing, repairing, utilities, and let’s not even talk about finding the right furniture that can fit your new living space! You will have all of those additional charges when buying a house in Milwaukee. This way you get a huge perk that manifests in you having some time to save up while still being able to get a great price for your new dream property.
If you want to be a homeowner, one of the reasons why you may be debating this decision is your credit that probably won’t allow you to qualify for a loan. However, during the lease period, you will have the chance to repair their credit. This can be taken one step further if you have the owner report your on-time rent payments to the credit bureaus. This way he or she will help you raise your credit score.
The sale price is pre-determined at the beginning of the lease. This means that fluctuating market isn’t a your worry, as you will buy the house for the price that you have agreed on today. You won’t have to worry about housing market forecasts, as the remains unchanged even if the value of the property goes through the roof five years from now. You could still buy the property at the original, lower price.
Benefits For Sellers
At the same time, there are several wonderful benefits for Milwaukee home sellers. Some of these benefits include…
Most of the time, potential buyers won’t mind paying the asking price in exchange for being able to rent the house, prepare for a mortgage, and ultimately purchase the property outright at today’s prices. If a seller is able to wait to receive the proceeds from the sale, a rent to own contract can help ensure they get the price they want.
Even though the homeowner won’t collect on the house right away, they will still have a nice amount of monthly payments from the property. Your potential buyer will still be paying you rent for every month until the lease term ends. Buyer surely wouldn’t want a default on the agreement, and at the same time your property isn’t likely to end up damaged as your tenant will try to keep the house nice for his future use. In fact, often times it happens that the tenant requests adding some upgrades to the property at their own expense!
How It Works
Rent to own contracts can be set up very differently. Some of the general practices associated with a rent to own contract include:
- A higher than average rent paid each month with a percentage of it going toward the buyer’s down payment.
- An option fee paid to the seller upfront securing the deal and providing the buyer with the option to buy at the end of the lease term.
- Designation of who is responsible for what. Repairs, maintenance, insurance, taxes, and utility payments should all be addressed.
- Contingencies are often put in the contract to protect the buyer from purchasing a house with undisclosed damage or costs.
When a rent to own agreement is set up properly, both the buyer and seller will benefit from the deal. At Sparks Property Investors LLC, we can help facilitate deals between buyers and sellers, making sure every detail has been taken care of.
Get in touch with us today to learn more! Call (262) 288-0580 and let us help you buy a house without a mortgage in Milwaukee!