Buying a home is a lifelong dream for most families, but it can be difficult for many people to achieve through traditional methods like mortgages and other financing options. Rent-to-own options have grown in popularity because they often fill that gap and help people buy without a classic mortgage. However, these plans also come with some significant risks that may not be obvious at first glance. Here are ten things you need to know about rent-to-own homes before you sign any leases or contracts.
As the name implies, rent-to-own homes do still involve paying rent to a landlord. The exact terms can vary widely, but in general, you'll be paying fair market rates. You may also pay a little more money each month, which is put towards the home's purchase price. For example, if you rent a house worth $1,000 a month in rent, you may pay $1,250 a month. The $1,000 goes to your landlord, while the $250 is put towards the purchase price.
This site offers information designed for educational purposes only. The information on this Website is not intended to be comprehensive, nor does it constitute advice or our recommendation in any way. We attempt to ensure that the content is current and accurate but we do not guarantee its currency and accuracy. You should carry out your own research and/or seek your own advice before acting or relying on any of the information on this Website.