Rent to own is when you rent a property for a few years with the intention of purchasing it at the end of the lease. You pay an option fee at the beginning of the lease so that you are given the first option to buy the home at the end of the lease. Each month you would pay rent just like you would in any other rental scenario. You will also pay a premium on your rent each month. The premium that you additionally pay is deposited into an escrow account and, at the end of your lease, will be credited toward your down payment on the property.
Rent to own is a good way to purchase a home if you have poor credit. It is very difficult to qualify for a mortgage when you have poor credit.
Renting to own a home is a great way to improve your bad credit at the same time saving up for your down payment.Not only will your hard work help you qualify for a mortgage at the end of your lease, but the money you’ve saved will help decrease your interest rate too.Check Your Credit