If you want to buy a home, but don’t have money for a down payment or can’t qualify for a mortgae, you might try a”rent to own” situation. With the many changes in our real estate market, more sellers are finding this a good option.
Here’s how a rent-to-own situation typically works: The renter/buyer agrees to rent the property for a certain period of time. An option to purchase the property at a specific price is agreed to, and a nonrefundable option fee is paid. Sometimes this fee is credited toward the down payment at the time of purchase. In addition, a portion of the rent paid is often credited toward the down payment as well. At the end of the lease term, the renter/buyer decides whether to buy the property or pay another option fee and continue renting the property.