With over 3 Rent to Own (RTO) homes currently on the Hawaii 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.
Hawaii Rent-to-own is a popular option among prospective homebuyers because it is essentially a neighborhood
“test drive.” Under the terms of a Hawaii rent-to-own option, you can live in the area you think is the best
long-term fit for your situation without getting immediately locked into a 15- or 30-year mortgage commitment.
The benefits of a "rent-to-own" home in Hawaii can be tremendous, but the option is not ideal for everyone.
Hawaii Rent-To-Own Pros And Cons:
PROS (Benefits of rent-to-own):
Live in an area or neighborhood that you other might be unable to otherwise currently afford
Learn whether or not you can actually afford the related costs associated with homeownership
Have a portion of the rent credited to the sales price and/or closing costs — instant equity!
Get a more favorable loan than you otherwise would be able to at the end of the term (no guarantee, though)
CONS (Disadvantages of rent-to-own):
Prepare yourself for an upfront non-refundable “option fee” (typically 35 percent of the agreed-upon purchase price)
It is important going into a Hawaii rent-to-own transaction that you are reasonably certain that you want to buy the house
at the end of the term. That’s because there are upfront, non-refundable expenses such as an “option fee” that are
required to validate a rent-to-own contract. In addition, the monthly rent payment will often include an additional
“credit,” which — along with the upfront option fee — will go toward the final purchase price at the end of the term.
Hawaii Rent-to-own or lease option typically costs more each month than simply renting (property taxes, insurance, maintenance costs, etc.)
The monthly rent-to-own payments will often include an “credit,” additional money on top of the fair rental value that will go
toward the final purchase price at the end of the term. In addition, to the monthly rent payments, you could also be responsible
for other expenses such as property taxes, insurance, maintenance costs, etc. — expenses for which traditional renters would
not be responsible.
Must secure financing at the end of the Hawaii rent-to-own term
Once a Hawaii rent-to-own term ends (the length depends on the specific deal you negotiate) you will need to apply for a home loan and
secure financing. It’s always a good idea to get pre-qualified for a loan before entering into a Hawaii rent-to-own agreement so that
you know the limits of your buying power. Lenders often look favorably at rent-to-own applicants, especially if you are able to
fulfill all the financial obligations set forth in the terms. In some cases, depending on the situation and the amount of extra
money credited during the rent-to-own term, the seller might offer finance the purchase of the home at the end of the rental period.