Rent-to-Own Homes Become Growing Trend

Renting homes with the option to buy is a growing trend across the United State. The recession left many foreclosed houses vacant and distressed, but it also left many former homeowners and would-be buyers saddled with bad credit and unable to qualify for conventional mortgages. Today, there are three types of situations where lease to own is an option: one, when someone owns a home and wants to flip it fast; two, when a landowner is anxious to seal a deal; and, three, when a developer wants to reinvest in a community by enticing people with stability to live there. For prospective homeowners, such deal give them a place to live while rebuilding their credit and saving money for a down payment. It is a win for the landowner because someone is now in the home taking care of basic maintenance. Plus, the residence is generating monthly income, and there is a ready buyer when the owner is ready to sell. Developer John Foley is taking this concept to a new level in Omaha. He and his business partner, Phyllis Peterson, plan to purchase 52 distressed homes, renovate them, and offer them in a rent-to-own option to the local working poor — a plan that hinges on obtaining the approval of the Nebraska Investment Finance Authority, which would need to earmark nearly $6 million in federal low-income housing credits for the project. | Read More