The most common question we’re asked it probably “what is rent to own?”
Put simply, rent to own is renting with the option to buy. These rent to own programs are most commonly used by buyers who are unable to qualify for traditional mortgage financing. They use the rent to own program as a way to get into a home of their own today at a pre-determined price.
Renting to own gives your client (the tenant-buyer) the time they need improve their credit, build a larger down payment, establish a stable track record of income, or overcome other obstacles that prevent them from obtaining traditional bank financing today. The goal is to have the client in a position to qualify for a traditional mortgage and take title of the home at the end of the rent to own term.