Rent to Own Housing
It is unfortunate that with the availability of rent to own housing, many people still live day to day not realizing the dream of home ownership. The sad fact of the matter is that many people haven’t heard of rent to own housing, and many others shy away from the thought based on the misguided belief that rent to own housing is a scam just waiting to bilk people out of their hard earned money, even though nothing could be further from the truth.
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What is rent to own housing?
If you are unfamiliar with the term “rent to own housing”, perhaps you’ve heard of lease option or lease to buy. These are all terms for the same thing. Essentially, renting to own is as easy as it sounds. You, the renter, enter into an agreement with the seller to rent their home for a certain amount of time (3 years is a common length), and at the end of the agreed upon term, you will purchase the house. How is this any different from a standard purchase agreement you ask? Simple. Each month, a portion of your rent (called a credit) is put towards the eventual down payment on the house. Thus, when you are ready to purchase the home, you already have a sizeable down payment saved up.
Is rent to own housing a scam?
Certainly not. Rent to own housing is perfectly legal, and is one of the only ways that some people can realize the dreams of home ownership. However, as with any business dealings, you must be careful what you are agreeing to. Some sellers have made unfair agreements with their buyers, making the deal less than equal. In most cases though, both parties stand to benefit greatly from a rent to own deal.
Is rent to own housing right for me?
If you have less than perfect credit, or haven’t saved for a down payment, rent to own housing may be right for you. Even if you are good in both areas, you may consider rent to own housing if the housing market in your area is particularly tough, because in most cases you will be dealing directly with the buyer. Weigh the pros and the cons carefully before deciding if rent to own housing is right for you.
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