Are you considering homeownership in Illinois but aren’t quite ready for a traditional mortgage? Rent to own homes might be the perfect solution for you.
Rent to own is a unique way to get into homeownership. Instead of paying a traditional mortgage, you’ll make monthly payments towards owning your home. With rent to own homes in Illinois, you can live in the property while making these payments and once they’re complete, you’ll have ownership of the property without having to come up with a down payment or closing costs. There are plenty of benefits to renting to own homes in Illinois so start your search today. Find the best rent to own homes in Illinois with low monthly payments, no banks, bad credit accepted.
Rent to own agreements in Illinois are governed by state laws and regulations, including the 2018 Installment Sales Contract Act, which offers additional safeguards for home buyers. Consequently, Illinois is known for having some of the strongest consumer protections in the nation regarding rent to own agreements.
Featured Rent To Own Homes in Illinois
Aurora, IL 60504
Crystal Lake, IL 60012
Springfield, IL 62704
Chicago, IL 60638
Plainfield, IL 60585
Rockford, IL 61107
Illinois Counties With Rent To Own Homes
Cities in Illinois With Rent To Own Homes
How Rent To Own Works in Illinois?
Rent to own homes, also known as lease option or lease purchase agreements, allow potential homeowners to rent a property with the option to buy it at the end of the lease. The rent to own process typically consists of the following steps:
The renter and property owner agree on a lease term, usually between 1-3 years.
The renter pays an upfront option fee, which is typically a small percentage of the home’s purchase price.
The renter pays a monthly rent, with a portion of each payment going towards a credit that can be used for the down payment on the home.
At the end of the lease term, the renter has the option to purchase the home using the accumulated credit as a down payment.
Benefits of Rent To Own Homes in Illinois
Rent to own homes in Illinois offer several benefits for potential homeowners, including:
Flexibility: Rent to own agreements allow you to move into your dream home without the immediate need for a mortgage. This provides time to save for a down payment, improve your credit score, and secure better mortgage terms.
Locking in Purchase Price: Rent to own agreements typically include a predetermined purchase price for the home, allowing you to lock in the price even if the market value increases during the lease term.
Building Equity: A portion of your monthly rent payments goes towards a credit that can be used for the down payment on the home. This helps you build equity in the property even before you officially own it.
Test Drive the Home: Rent to own agreements give you the opportunity to live in the home before committing to the purchase, ensuring it’s the right fit for you and your family.
Strong Consumer Protections: Illinois has some of the strongest consumer protections in the nation when it comes to rent to own agreements. This law provides additional safeguards for home buyers who choose to finance their purchase through rent-to-own contracts.
Variety of Options: Illinois offers a wide range of rent-to-own homes in popular counties such as Cook, Lake, DuPage, Will, Kane, and McHenry. This variety allows potential homeowners to find a home that suits their needs and preferences.
Why Rent to Own is a Great Option for Home Buyers in Illinois?
Here are four reasons why renting to own is a great option for home buyers in Illinois.
Build Your Credit Score
One of the primary benefits of renting to own is that it provides an opportunity for potential buyers to improve their credit score. Many people may not qualify for a mortgage due to a bad credit score or a lack of credit history. By renting to own, you can work on building your credit score during the lease term, which can increase your chances of qualifying for a mortgage when the time comes to purchase the home.
Save for a Down Payment
Saving for a down payment can be challenging for many potential home buyers. In a rent-to-own agreement, a portion of your monthly rent payment is typically set aside as a credit towards the down payment on the home. This allows you to gradually save for a down payment over the lease term, making it more manageable to accumulate the necessary funds for a mortgage.
Gain Equity in the Home
In addition to saving for a down payment, some rent-to-own agreements also allow you to build equity in the home during the lease term. This means that any improvements or repairs you make to the property can increase its value, which can ultimately benefit you when it comes time to purchase the home.
Bad Credit? Rent to Own Homes Are a Great Choice
If you’re battling with bad credit but still dreaming of owning your own home, rent to own homes might be the perfect solution for you. Let’s dive into some of the key perks this option offers:
Taking a Shot at Homeownership: Being denied a mortgage because of bad credit can be a bummer, right? That’s where rent to own homes step in. They’re like a ray of sunshine on a cloudy day, creating a pathway for you to become a homeowner without having to immediately knock on the bank’s door.
Watch Your Credit Score Grow: As you navigate your rent to own period, it’s like you’re on a mission to repair your credit score. Every payment you make on time is like a pat on your credit history’s back. When the lease period wraps up, your credit score could look healthier, and you’ll be a much more attractive prospect for mortgage lenders.
Sweet Deals with Locked-In Prices: Who doesn’t love a good deal? With rent to own contracts, you usually get a locked-in purchase price for your home. Imagine the property value goes up over time (fingers crossed!), you’re already in profit territory because you’re buying it at the old price.
Breathing Room for Your Finances: We all need some room to breathe, especially when it comes to finances. With a rent to own arrangement, you’ve got a nice, flexible space of about one to five years to get your finances sorted; fix up that credit score, save up for the down payment.
Try Before You Buy: Just like trying on a pair of jeans before buying, rent to own gives you the chance to live in the home and explore the neighborhood before fully committing. This ensures you’ll love the property you’re investing in.
So, with all these great benefits, a rent to own scheme could be the opportunity you’ve been waiting for, even with bad credit.
Cost Of Living in Illinois
The cost of living in Illinois is slightly higher than the national average.
The median home cost in Illinois is relatively higher than the national average.
For renters, the cost would depend on the location and size of the dwelling. Renting a two-bedroom apartment in Illinois averages around $1,078 per month, while the national average is $1,092
Utilities are also below the national average, and groceries and health care are similar to those found nationwide.
The median household income is roughly $65,886.
It’s important to note that the cost of living in Illinois varies greatly from city to city, with places like Chicago generally being more expensive than smaller towns and rural areas.
Illinois, also known as the “Prairie State” or the “Land of Lincoln,” embodies a wealth of American history coupled with modern allure. With an estimated population of about 12.7 million as of 2021, it is the sixth most populous state in the U.S.
Its vast dimensions expand over 57,914 square miles, making it the 25th largest state in the U.S. by land area. The state’s capital is Springfield, a city riddled with historical gems like the revered Abraham Lincoln Presidential Library and Museum.
Illinois is also home to the Windy City, Chicago, which is not just the largest city in the state but the third-largest in the U.S., boasting close to 2.7 million inhabitants. This dynamic city gained statehood on December 3, 1818, going on to establish itself as the 21st state of the Union.
Notably, the illustrious 16th President, Abraham Lincoln, launched his political career in Illinois, serving diligently as a state legislator before his fateful presidency.
Meanwhile, the iconic Route 66, stretching seamlessly from Lake Michigan’s Chicago shoreline all the way to the sandy beaches of Santa Monica in California, was laid down in 1926, etching Illinois into the annals of the American highway system.
The state’s charisma doesn’t end with its illustrious history. Its culture is overwhelmingly palpable, especially in its culinary delights. Chicago boasts its own brand of deep-dish pizza, complete with a thick, buttery crust that encases a rich melody of tomato sauce and an abundance of cheese.
This is not to mention the city’s skyline, which stands as a veritable exhibition of renaissance and modern architecture, featuring iconic buildings like the Willis Tower and the John Hancock Center.
A mere stroll in the city unveils a rich tapestry of cultural institutions, notably the Art Institute of Chicago, the Field Museum, and the Museum of Science and Industry.
Sports fans are also catered to generously with the state’s several major sports teams, including the NFL’s Chicago Bears, the NHL’s Chicago Blackhawks, the NBA’s Chicago Bulls, and the dueling Major League Baseball teams, the Chicago White Sox and the ever-popular Chicago Cubs.
Away from the bustling cities, the Illinois countryside is a testament to the state’s influence in U.S. agricultural production.
The state’s corn and soybean yields are among the highest in the nation, thanks to the region’s fertile soil and expansive farmland.
Moreover, the state’s central location provides an ideal hub for freight and logistics, revealing a robust manufacturing and transportation economy.
Its pivotal position is strengthened by Chicago’s standing as a major air and rail convergence point. In all, the vibrant state of Illinois offers an intriguing blend of history, culture, and economy – all elements that truly form the American identity.