what is rent to own

Rent-to-Own is where you rent a property and agree with the current owner that a portion of your monthly rental payment will be set aside to be used a your downpayment on the home at some point in the future. Normally it is an arrangement you make with your landlord when you first start to rent the property, it is not something that most people activity trying to sell their home would consider.

Also called a lease-to-own house, the process works similarly to a car lease: Renters pay a certain amount each month to live in the house, and at the end of a set period -- generally within three years -- they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually buy the home

Rent to own are basically a lease agreement with you agreeing to pay above market rents on a property to help to save for a down payment. Many reasons come into play as to why a person does this but I would warn that they can be very tricky to find a lender and insurer to accept at maturity. Each agreement is written up differently and they can be tough to find a lender to accept once you are at the maturity stage. I would suggest you get a copy of the agreement and have a broker shop it around to a few lenders to see if they think it will be acceptable at possession date.

Rent-to-own is also sometimes called 'buyer in training,' and is just one of several 'creative financing' options available to get a property sold. If your local real estate professional is not able to clarify these options for you, seek out a knowledgeable mortgage broker and ask lots of questions!

Rent-to-own is a process by which person can lease a property and have an option to buy it at a future date. MAKE SURE YOU WORK WITH SOMEONE EXPERIENCED IN THIS! Many times it does not work out but it can be a great tool depending on your situation.

it's a financing option to buy a house: you rent your house to someone who will buy it with the money he is paying you as a rent by example.

Have a good day!

Samuel Leclerc
514-465-1987
Real Estate Broker
Via Capitale Du Carrefour

Rent to own is a type of legally documented transaction which tangible property, such as furniture, consumer electronics and home appliances, is leased in exchange for a weekly or monthly payment, with the option to purchase at some point during the agreement. Being Different from traditional methods of purchase, rent to own transactions are not obligations to purchase, since the agreement can be terminated by the lessee at any point in time with the return of the property.