Rent to own homes in Illinois are exceptional opportunities for individuals who aspire to homeownership, but may not yet qualify for a mortgage. This unique agreement allows potential buyers to lease a home with an option to purchase it later, a flexible arrangement accommodating various financial situations.
Whether you’re interested in newly constructed homes or pre-existing homes, Illinois provides a plethora of rent-to-own options. To help inform your decision-making, we’ve addressed some Frequently Asked Questions below:
What is a rent to own Home?
A rent to own home is a property leased by a tenant with an option to purchase at a predetermined price. Tenants typically secure this right by paying an upfront fee known as the “option consideration.”
How Does the rent to own Process Work in Illinois?
Potential buyers in Illinois can move into a rent to own home immediately after the agreement is in place. A portion of their monthly rent will contribute to the home’s purchase price, and the contract usually lasts 1-3 years, allowing the buyer to save for a down payment and build equity during this time.
Can I Get a rent to own Home If I Have Bad Credit?
Absolutely! Rent to own homes in Illinois are suitable for a variety of potential buyers, including those with bad credit or those who can’t currently qualify for a traditional mortgage. This option allows individuals with less than perfect credit to start their path towards homeownership while they work to improve their financial situation.
Do I Need a Large Down Payment for a rent to own Home in Illinois?
Rent to own agreements in Illinois require an initial “option consideration” fee, generally ranging from 2.5% to 7% of the purchase price. This fee is typically less than a standard down payment and might be credited towards the house’s purchase price if the tenant decides to buy the property.
Can I Negotiate the Terms of a rent to own Agreement in Illinois?
Certainly! Both the potential buyer and homeowner can negotiate the terms of a rent to own agreement in Illinois. Negotiable elements often include the lease term, rent amount, “option consideration” fee, and final purchase price.
What If I Change My Mind and Don’t Want to Buy the House?
If you decide not to purchase the house once the lease term ends, your purchase option expires. You forfeit the “option consideration” paid upfront and any rent credits accumulated. The homeowner can then seek a new tenant or consider other selling methods.
How To Start?
You can start with our rent to own homes listings in Illinois. We have a wide selection of properties for rent to own in Illinois, including homes for sale and lease. You can also search for a property by city or county to find the perfect home. Use our advanced filters to narrow down your options based on price, size, bedrooms and bathrooms, location or other features you want in a new property. Once you find the right property you can apply for it.