What Is Rent to Own?
A rent to own agreement gives the buyer control of a property, not full ownership, with the ‘option’ to purchase the property at the end of the contract period. Essentially it is a contract to buy a property with an extended closing date. That way you, as the buyer, have time to save a down payment, clear up any credit issues, and to line up financing.
Typically, you, the buyer, will put down an option consideration, like a deposit for a rental, to secure your place as the future owner of the home. Then you’ll make monthly payments, and at any time during the option period, you are authorized to complete the transaction of the home.
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