Rent to own is an ideal option for anyone that wants to get into a home today but can't get approved for a mortgage. Why waste money on a regular rental when you can purchase your own house by renting it first?
In many cases, buyer's can't afford the down payment, don't have sufficient credit, or can't afford the monthly lease payment on a home. Rent to own is the solution.
First, you have to find your dream home. Next, the renter (buyer) and landlord (seller) come to an agreement about how much rent the renter will pay each month to live in the house, and at the end of a set period - generally three years - they have the option to buy the house at a pre-agreed upon price.
Each monthly rent payment is allocated between income for the landlord and down payment deposit for the renter - these incremental payments add up in a separate holding account so that the renter can afford the down payment at the end of three years and realize their goal of home ownership.