If you are a renter in Fremont who is tired of paying someone else's mortgage and want to own your own Fremont home, there are many ways to buy a real estate; one of them is rent to own (RTO) option, a means of acquiring ownership over time without taking on debt. The renter agrees to lease the home for a pre-determined time usually from one to three years. There may be an up-front consideration fee. The seller allows the buyer to lock in a monthly price for the property till it is paid off. This is a way to settle on something that is right for you even if you are not in the position to make an immediate purchase. A lease purchase can make your rent money work for you instead of making your landlord rich.

Similar to a rent to own for a TV you can have a rent to own for a piece of Fremont  real estate. In this case most sellers that are willing to do this (and there is not many) will want a non refundable deposit on the property, then you pay the landlord rent until you can purchase the property. This is similar to a lease option as well, except all you pay is rent. The deposit is much less than an option and you do not pay the taxes or the mortgage, since you are still a renter. The benefit of doing this is you get into your home with the intention of buying the house at a later date. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run.

This type of agreement works well with those who are new to the Fremont  housing market or have made a job transition. It also is positive for anyone who needs to strengthen his/her credit or pay off an obligation to qualify for a home purchase. Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-50%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. The best part about this is that with a rent to own home, you get to live in the home you want to buy while you work on fixing your credit up.

The biggest drawback to this is quite often the agreed upon price is a future price of the home. If you have a house that is valued at $350,000, a rent to own price would look closer to $370,000. That might seem like a rip off, but a lot cheaper than a rent to own with a TV where you would pay 2-3 times the price of the TV over a 5-year period.

This creative process of how to buy a rent to own house is becoming more and more popular because it creates a "Win - Win" scenario. The Buyer is able to get into a home with limited money and credit, and the Seller is able to get a fair price for their home and get it sold more quickly.

There is a lot of free information available to you about buying, selling, investing, or relocating in the Fremont real estate market. For complete information about the Fremont Ca real estate market including current Fremont homes for sale, property values, market conditions and more please visit the most complete website dedicated to everything Fremont real estate related. www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Fremont real estate agent in or near Fremont Ca, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. Clyde Brown Legacy Real Estate & Associates.