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Find District Of Columbia Rent to Own Homes

With over 1 Rent to Own (RTO) homes currently on the District Of Columbia market, there’s surely one that will match up with your needs. If not, we update this list daily, so if there isn’t one today, come back tomorrow and see if one has shown up in your area. If you don’t have time to come back each day, sign up for our alerts. We will email each time a new listing comes on the site and matches your requirements. Just remember to carefully research each property to see if it fits your criteria. Visit the home and neighborhood a few times to be sure it will work for you and/or your family. The great option with a Rent to Own house, there’s no commitment to purchase. So, if the house or neighborhood doesn’t work out, you can move on without any issues. Once you locate a Rent to Own home that will work for you, you’ll be on your way to start the RTO process.
Click on the city near you to view available listings or click on the county name link to see all Rent to Own properties in that county.

Rent To Own Steps

  1. Determine if rent-to-own is right for you
  2. 1.

    Find a rent-to-own home

    Search the best rent-to-own homes near me on Foreclosure.com using our comprehensive database and find your ideal rent-to-own home today!
  3. 2.

    Get a home inspection

    It’s normally not necessary to commission a home inspection on a traditional home rental, but remember that rent-to-own is not a traditional home rental. This is a short- and long-term investment that requires the utmost attention to detail. And the small upfront cost of a home inspection could save you literally thousands down the road. Therefore, hire an independent home inspection professional to uncover any problems the house may potentially have. It’s important to do this even if the current homeowner furnishes a disclosure statement that attests to the condition of the home. If the independent home inspector points out problems, it’s important to determine whether or not the issues will prevent you from getting a future home loan once the rent-to-own term ends. Therefore, make sure the contract specifies who is responsible for making the necessary repairs discovered during the inspection prior to finalizing the rent-to-own agreement. The homeowner might offer a credit off the final purchase price at the end of the rent-to-own in lieu of payment for damages. Either way, be sure to get everything in writing before finalizing a rent-to-own contract.
  4. 3.

    Negotiate fair terms

    It’s critical to sign an agreement that is in your best short- and long-term interests. The rent-to-own option will cost more than a traditional home rental because there are other costs baked into the monthly amount. The good news is these “other costs” such as the initial option fee and monthly credit will go toward the final purchase price. Nevertheless, a rent-to-own contract should always include the length of the rent-to-own lease agreement (usually anywhere from 12­ to 70 months), the amount of initial option fee (usually 35 percent of final purchase price), the final purchase price at the end of the term, and the amount of the monthly payments that will go toward the purchase price. These figures are all negotiable.
  5. 4.

    Review the contract

    It is highly recommended that you hire a real estate attorney to review the rent-to-own agreement. In addition, be sure to contact a home insurance agent to determine the coverage that you will need. Indeed, now that you have an interest and will be invested in the home, you may require additional insurance to protect it.
  6. 5.

    Execute the contract

    Once you fully understand all the terms of the rent-to-own agreement -- and have had an attorney look it over and provide feedback -- it’s time to finalize the deal. Of course, signatures from both parties will be required at this time, as well as upfront payments such as the agreed-upon “option fee,” the monetary consideration that is necessary to make the rent-to-own contract binding.
  7. 6.

    Make monthly payments

    Rent-to-own homes will typically cost a bit more than the fair market value of other home rentals in the area. That’s because a portion of the monthly rent-to-own payment will be designated as a “rent credit” -- up to 20 percent of the monthly amount due -- will go toward the purchase of the home when the agreed-upon term expires. It’s important to make these monthly rent-to-own payments on time and as scheduled.
  8. 7.

    Start planning (for end of contract)

    As the end of the rent-to-own contract nears, it’s a smart idea to address any minor problems that the home inspection turned up. It’s also a good idea to make small cosmetic improvements and upgrades as needed, if possible, to help increase the value of the home prior to applying for a mortgage loan. It’s called sweat equity … and it can make a big difference when it’s time to negotiate favorable mortgage loan terms.
  9. 8.

    Apply for a mortgage (at end of contract)

    Part of planning for the end of a rent-to-own contract is identifying a mortgage company that can help you finance the balance of the home loan. The mortgage company will:
    1. Run your credit
    2. Verify your employment
    3. Verify your income
    4. Verify your debt-to-income ratios
    This will ensure that you are not getting into a contract to purchase a home that you can’t afford. It’s important to give yourself a decent head start on the mortgage loan application process to see where you stand, as well as give yourself time to repair and/or fix any credit-related issues that might prevent you from obtaining a home loan. That’s because you need to be ready with an approved mortgage loan on the date specified in the rent-to-own contract.
  10. 9.

    Close on your new home!

    Once you have satisfied the terms of your rent-to-own contract, made improvements to the property, lined up your home loan financing and closed on your rent-to-own home, the last thing you need to do is celebrate — You are now a proud, new homeowner. Congratulations!
How do Rent to Own Homes work
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Rent To Own - Basic questions

Learn what rent to own homes are and how to take advantage of this type of real estate in this video.

Learning Center

Rent To Own Basics

Find out how to buy a rent to own home in your area and profit off of this type of real estate listing type.

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