Lease to own houses in New Jersey are an excellent way to get into your home without having to pay the full value of it up front. It is also a great way for you to gain equity in your home as you pay down your lease payments. These programs are available in New Jersey through many different companies, but they all work in similar ways.
A lease-to-own program, also known as rent to own allows you to purchase a home at the end of a specified period of time by making monthly payments over an agreed upon term. Typically, you will make double-digit payments each month until you have paid off your initial down payment and have reached the end of the term. At this point, you will have built up enough equity with the company that they will sell you the house at its current market value along with any other fees associated with closing on real estate transactions (such as transfer taxes).
While you will still have to make a down payment on the home, this amount is typically much lower than what you would have to pay for a traditional mortgage. This can be especially helpful if you are a first-time buyer or don’t have enough money saved up for your down payment yet. You can find a lot of rent to own houses in New Jersey from online rent to own listings.
The terms of a rent-to-own agreement vary from one company to the next, but you can expect it to be a long-term commitment. Most contracts are written for five years or more. You will also have to pay monthly rent during this time period that is typically higher than what you would pay for a traditional lease agreement. If you decide to purchase the home, the rent that you have been paying will go toward your down payment. If not, then you will have to pay all of the remaining rent plus any fees associated with breaking the contract.