52% of Charlotte residents are homeowners. What's keeping you from being part of this group?
If you're like most people who dream of owning a home, you'll say that the price of buying one is unaffordable. Sure, $312,000, which is the median price of a home in Charlotte, is no small amount.
While mortgage financing remains a popular path to homeownership, it's not for everyone. Here's another path you might be interested in: rent-to-own homes.
That's right! You can pay rent, only that this time the rent will be counted as home purchase payments. Read on to learn more about rent-to-buy homes and how to go about it.
How Does a Rent-to-Own Program Work?
Renting to own largely means paying rent towards homeownership, but there's more to it.
Although rent-to-own agreements can vary, often the prospective buyer is allowed to rent a property for a certain period with the exclusive right to purchase it. During this period, part of the rent will go towards the purchase price of the home. If the buyer takes up the option to buy the home, they'll only need to pay the balance (cash price minus the rental payments you've already made).
In Charlotte, there's a $550,000 cap on the price of the properties that are available for rent-to-own programs. There's no minimum price.
There's a non-refundable option fee that's payable at the start of the agreement. It can be anywhere from 1 to 7% of the purchase price.
Is Rent-to-Own Right for You?
If you're currently renting and desire to be a homeowner, you might naturally feel that this program is right for you. However, it's important to carefully consider your personal situation before determining the next move.
Buying a home is a big financial commitment, whether you're buying through a mortgage or rent-to-own. Most people prefer getting a mortgage because even though the overall cost of the house increases significantly, the payments are spread over a long period of time (30 years), making the monthly payments manageable.
If you cannot afford a mortgage right now, it's highly likely that you might not be able to afford a rent-to-own home either. At the end of the contract period, you'd still need to find a way to pay the balance if you're interested in buying the home. Many buyers will go for a mortgage at this point, but what if you still don't qualify or can't get one at favorable rates?
The Next Steps
If this flexible home purchase option is ideal for you, the next step is to find properties that are offered under the program. Developers will offer you different terms on their agreements, so be sure to negotiate and find a good deal for yourself.
It's important to have a real estate attorney on your side so that you're fully aware of your contractual obligations.
Rent-to-Own Homes: Seize the Opportunity
There are plenty of rent-to-own homes in Charlotte, presenting an ideal opportunity for prospective buyers like you to realize their dream. If you're ready to make the move, but don't know where to start, PMI Charlotte has your back.
We are a full-service real estate asset management company providing realty services to buyers. Our dedicated team offers professional and responsive customer service.
Fill out this contact form and let's know about your needs.
