While renting to own may not be the most popular way to buy a home, for a select few it is the best option available.
For Sellers, it allows them to make additional income so long as they can be patient while selling. Meanwhile, it gives buyers a chance to save money for a down payment, improve their credit scores and prepare to buy.
One of the best parts about renting to own is the flexibility and ease of transition. The renter-buyer gets to avoid the stress of multiple moves. They can also get to know the house they are moving into better, which means avoiding buyer’s remorse all together.
So what is renting to own? Basically it’s a specific agreement between a homeowner and buyer. The buyer will sign a rental lease and pay rent like any other rental agreement. But they will also pay an additional fee each month that will be held in escrow and go towards the down payment for the purchase of the house.
This is a great deal for sellers as well, the renter will help to pay off the mortgage before you sell, therefore maximizing the money in your pocket when you finally close.