Niche.com says the national median home value is $281,900, considerably higher than San Antonio's $198,000. Alamo City's median rent is also cheaper, at $1,189, compared to the national, at $1,268. So, it's no wonder renters and owners in the city are nearly equal (48% vs. 52%).
As a long-time renter, you may have always considered buying a home. However, you may have put it off since homeownership is a massive financial investment.
If you're ready for homeownership but your finances aren't, rent-to-own homes in San Antonio, TX, might be the option you're looking for.
Our team at PMI Profit Realty explains lease-to-own houses in this property investment guide, so please read on.
How Do Rent-to-Own Homes Work?
Rent-to-own homes, like traditional rental units, are properties you can lease long-term. The primary difference is that they also provide homeownership options, allowing you to buy before the lease agreement expires. Note that some lease-to-own properties have an "obligation" clause, meaning purchasing the property is a must, not an option.
You'll still make the regular monthly rental payments with a rent-to-own home. However, if you also plan to buy the property by the end of the lease, the current property owner will take a portion of your payments and put it toward your down payment. Then, if you decide to buy, the money collected previously can count toward the purchase.
When Should You Consider a Rent-to-Own Home?
Renting to own residential real estate in San Antonio can be an ideal option if you want to buy property but don't have enough saved for a down payment yet. As Bankrate points out, the traditional standard is to make a 20% down payment. So, for a property whose price is $200,000, a 20% down payment equates to $40,000, which is still a lot of money.
Since part of your rental payments toward a rent-to-own house can go toward building your down payment, it can help make the home-buying process friendlier to your wallet.
Another reason to consider a rent-to-own home is if you don't qualify for a mortgage yet. Perhaps your credit history is too short, so lenders are unwilling to offer you the best mortgage rates.
Either way, you can use the time you're in a lease contract to build credit. Hopefully, by the time your lease expires, you already have a stellar credit history showcasing your creditworthiness.
In that case, you're more likely to qualify for real estate financing options with better rates. If so, you can use the loan to finance the purchase of the lease-to-own home.
Ready to Transition to Homeownership?
Rent-to-own homes can be a good option for aspiring homeowners who aren't financially ready to make the big move yet or don't have enough credit history to qualify for mortgages. So, if you fit in either category, consider exploring lease-to-own properties in San Antonio, TX.
If you need expert assistance, PMI Profit Realty is happy to help. We're a full-service property management firm specializing in real estate brokerage services. With our local knowledge, state-of-the-art technology, and the support of PMI, our parent company with over 20 years of property management expertise, we can help you find your dream home, whether for rent, sale, or both.
Drop us a line today for a free consultation!
