Are You Ready to Rent to Own?

We get calls every day from people who want to Rent to Own their next home. Some are really motivated, and some are just trying to learn how Rent to Own works. We're happy to help either person understand how Rent to Own works, and to decide if they are ready to look for a Rent to Own home now, or if they need to set Rent to Own as a goal for the near future.

Why You Should Consider Rent to Own, or Owning a Home in General

Home ownership is one of the key aspects of the American Dream. The pride of ownership is a tangible feeling, a good feeling you truly do have when you own a home, instead of just renting it. It does feel good to fix up a home for your family, knowing that you own it. It does feel good to landscape a property so it has "curb appeal."

It is a pride thing. It does make you feel good. It makes you feel more accomplished, more stable, and more secure. It can even start you and your family on a path toward higher expectations for yourself, bigger achievements, loftier goals.

Home Ownership Isn't Always Easy

There's no doubt owning a home gives you stability and security that you simply do not have as a renter, but home ownership isn't always easy. But then nothing worthwhile in life is easy. Some times you have to push yourself a little harder for the good things in life.

Overspending on Doodads...

If you're regularly spending money on doodads -- you know, stuff -- you're probably never going to get out of the rental rat trap. If you really think you have to have those $100 gym shoes, or that big screen TV, or a brand new car, but you don't have any money saved up to put toward a down payment on a home, well, you're probably never going to get there. You don't need more stuff.

Putting Money Aside...

It isn't easy to accumulate the money needed for a down payment on a home. A traditional mortgage lender (ie., a bank or mortgage broker), usually looks for you to have 10 or 20 percent of the cost of the home as a down payment. Unless you're making thousands more in salary every month than your total monthly expenses -- and not very many people are -- you're looking at a long road to save up that down payment.

But if you can find a way to cut some of your expenses, and possibly improve your earning situation -- maybe by going back to school or learning a new skill -- you can start putting money aside. And once you get going toward that goal, you'll be surprised how excited you'll become as your savings grow. This by itself will give you a great feeling of accomplishment.

How You Can Rent to Own 

Rent to Own homes typically don't require as much money down as a traditional bank loan style mortgage. You won't have to save up as much, but you will need to have some money available. The typical Rent to Own home requires approximately 3 to 5 percent up front. This is called "Option Fee." It gives you the option to purchase the home in the future at a price you can lock in today.

Most of the homes we have available as Rent to Own require a minimum of $5,000 option fee plus the first month's rent. More expensive homes will require more option fee. Every home is different, and everything is negotiable.

If You're Not Ready To Rent to Own Yet

Maybe you need more time to build up the required option fee for a Rent to Own home. If so, that's OK, we can help you find a regular rental and advise you on getting into a Rent to Own home in a year or two. While you're increasing your savings, you'll also have time to improve your credit score, which will also help your situation.

Let Us Know What Kind of Home You're Looking For

Whether you're ready for Rent to Own or not, let us know your situation and we'll find you a nice rental, or a Rent to Own home you will eventually purchase and call your own. You can start by completing our application (CLICK HERE) or by calling Adam at 630-697-4500.

We'll let you know what homes we have available now as Rent to Own, or we can set up an MLS search of regular rental properties that meet your specific criteria.

Visit our website for more information: MyHappyHomeSolutions.com

Women as Homeowners: Why Women Buy Homes (It's Not the Same Reasons as Men)

While both genders are attracted to the idea of owning a home, their reasoning is often slightly different.  It’s important to understand this, so when you are talking to your dad, brother, or male friends about your decision to purchase a home, you aren’t offended when they say, ‘that’s not a good reason to own a house’.

It’s not that your way is wrong, it’s just that the two genders tend to think about home ownership for different reasons.

Single women are buying homes at twice the rate single men are, we are responsible for 1/5th the housing purchases in the united states this decade.  We buy as an addition to our investment portfolio, to secure a place in a safe neighborhood, to get the size (bigger or smaller) that we need, and to be close to work.

Men tend to buy thinking in the immediate future, planning on being in the home for less than 5 years before moving up.  Women, on the other hand, look more long term and into a place where they intend to stay for over 5 years.  Single women choose sububurbs over cities, and for single moms, school district quality is a big determinant in where she buys.

-- from SingleWomanHomeOwner.com

If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Diane at 312-213-8137. We always have Rent to Own homes available!

10 Reasons to Buy Instead of Rent

With rents going up and interest rates at an all-time low, renters should consider taking the plunge.

Home buying has earned a bad rap in recent years: The subprime mortgage crisis and ensuing economic meltdown left many homeowners underwater, unable to pay their mortgage, and even facing foreclosure. Home ownership rates fell throughout the recession, and are currently around 63 percent, compared with almost 70 percent in 2004, according to the Census Bureau. That's the lowest level since 1967.

But the great American dream of owning a home appears poised for a comeback. Real estate company Trulia reports that in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable. Trulia found that in 98 out of 100 major metropolitan areas, including Detroit, Atlanta, and Cleveland, buying has become more affordable than renting.

If you're struggling with whether to buy versus rent, consider these 10 reasons to take the plunge into home ownership:

1. You can ramp up energy efficiency.

Energy-efficient improvements, from adding insulation to upgrading your air conditioning unit, can reduce your monthly utility bill, says Jane Hodges, author of the new book Rent Vs. Own. While renters can make plenty of green improvements on their own, from unplugging appliances to turning off lights, homeowners can make bigger changes, such as adding solar panels or installing an energy-efficient roof. (Of course, a renter living in a one-bedroom apartment likely uses far less energy than a homeowner in a three-bedroom house, so size can trump energy improvements.)

2. You can customize your space.

Whether you need to knock down a wall to make a larger master bedroom or redo the bathroom to reflect your Art-Deco tastes, owning the space you live in means you have the freedom to do so, without worrying about losing your security deposit.

3. Homeowners buy less furniture.

"Often when you're renting you need custom furniture that fits the space," says Hodges, such as room dividers for a loft or miniature furniture to fit into a basement apartment. "When people move a lot, they can end up buying a lot of furniture," she says. If you buy a home and settle in for the long haul, you can likely purchase a few pieces that will stick around.

4. Owning a home forces you to save.

The so-called "forced savings" argument is a widely-held one: Since homeowners have to pay their mortgage every month, they are routinely putting money away (and into their house, which they own), instead of squandering it on new shoes or fancy meals. Then, if you eventually sell your home after the mortgage is paid off, there's a good chance that "you'll walk away with a payoff," even after subtracting the costs of ownership, says Hodges. (Of course, homeowners who face foreclosure or declining home values often find themselves without such equity to show for their monthly mortgage payments.)

5. Home ownership allows you to build a second income stream.

From taking in a renter in a spare bedroom to renting out driveway space to commuters, Hodges says homeowners are increasingly finding ways to monetize their homes. In cities with scant green space, some homeowners even rent out small patches of grass for people who want to grow vegetables.

6. No landlord can kick you out.

Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else, or otherwise end the lease. That's one reason Boston University economics professor Laurence Kotlikoff says that for older people with a fixed income in particular, he recommends home ownership (and a paid-off mortgage). "It's important for older people to be in a home that they own as security against a landlord," he says.

7. In fact, you don't have to speak to a landlord, ever again.

Landlords can take ages to fix a broken dishwasher, let the air vents fill with dust and particles, or leave pesky messages about repairs. If you're the homeowner, then you're in charge—which means you have to be home when the plumber calls, but the plumber reports to you. (And, of course, you also have to pay the plumber.)

8. Unlike rent, a fixed mortgage can't go up (even if inflation does).

Fixed mortgage rates don't go up, even if the cost of everything else does. To protect yourself, Jack Otter, author of Worth It… Not Worth It? suggests making a 20 percent down payment and taking out a 30-year fixed mortgage to lock in today's low interest rates. "Mortgage rates haven't been this low since GIs were heading home from France. Lock in a low monthly payment, and you've just taken a huge step in protecting your family against inflation," he writes.

9. Homeowners can take tax deductions.

The chief tax benefit of home ownership is the ability to deduct mortgage interest payments, but the perks don't stop there. Homeowners can also deduct eligible expenses (certain energy-efficient improvements, for example) and in some cases can avoid federal taxes on earnings from the sale of a home.

10. You can take advantage of currently low interest rates and prices.

Interest rates remain at historical lows, and at the same time, home prices in many areas remain soft. Trulia points out that deals are especially appealing in suburban areas, compared with the more expensive cities. Overall, Trulia says, asking prices on homes went down 0.7 percent over the last year, while rents went up by 5 percent.

Of course, buying isn't for everyone. If you might move soon, or you want the flexibility to upgrade your digs with just a month's notice, or your job outlook is uncertain, then renting can be ideal. Hodges says potential buyers should first consider the transaction costs of home ownership, which can add up quickly, especially if a buyer doesn't plan to stay put for very long.

"During the bubble, people were looking at homes as a tool to make money," says Hodges. Now, they just see it as a place to live.

By Kimberly Palmer

from Money.USNews.com

If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!