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Renting to own is basically ahybrid approach to buying a home where all or a portion of a lease payment goes to building equity in a home over time. It is usually a process by which the owner of a home allows a renter to build equity without having to make a down payment or secure a mortgage. What Are the Advantages of Rent to Own Agreements?

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  • What is a rent to own home?

  • Rent to own, also known as lease to own, allows you to rent a dwelling with an option to buy the home within a specific period. A portion of your monthly rental payments will go toward a down payment. Renting to own gives you time to work on your credit score and to increase funds used for a down payment.

  • Do you need a mortgage to rent to own a house?

  • Rent-to-Own Homes: How the Process Works. If you檙e like most home buyers, you檒l need a mortgage to finance the purchase of a new house. To qualify, you must have a good credit score and cash for a down payment. Without these, the traditional route to homeownership may not be an option.

  • What is the difference between lease-to-own and rent to own?

  • Rent-to-own agreements include a standard lease agreement and also an option to buy the property at a later time. Lease-option contracts give you the right to buy the home when the lease expires, while lease-purchase contracts require you to buy it.

  • What is a rent-to-own home?

  • There is an alternative, however: a rent-to-own agreement, in which you rent a home for a certain amount of time, with the option to buy it before the lease expires. Rent-to-own agreements consist of two parts: a standard lease agreement and an option to buy. 1