Rent To Own


Have You Considered Rent-To-Own Homes? 


If your goal is to purchase a new home but have been told that you don't qualify for a typical mortgage, know that there are alternative options. 

For some people, the answer is purchasing through a lease to own option. 

Lease to own, or lease with option to purchase deals can be structured a number of ways. There is no "standard" when it comes to how the contracts and financing options are done. First and foremost, one of the most important things to remember if considering a rent to own home is to hire an attorney!  

Here are a few of the common options that we see:

  • Buyer puts down a large down payment or "option fee" and then pays monthly rent to the seller. Sometimes a portion of the rent is applied towards a future purchase, but not usually. Once the specified lease term ends, the buyer has the option of purchasing the home. This lease term is typically under 3 years and if buyer decides not to purchase, they may forfeit the initial "option fee". 
  • Renter enters into a long term lease with the option to buy at either a predetermined amount or future market value. The landlord may or may not credit a portion of the rents, and will likely require the renter to pay many of the fees that the landlord typically pays (property taxes, homeowners insurance, etc). 

There are numerous variations of the scenerios above, with most being leveraged towards the landlord. Know that you will almost always pay a higher monthly rent with any lease to own home. 

Then there are creative investors that structure the contracts to compete with the open market. We work with one such investor that spells out all of the terms in advance, and you get to pick the home. This can be a great option for those that are struggling with lower credit scores. 

Basic criteria:

  • Minimum income of 50,000 
  • Home must be in an approved area 
  • Home must be in good condition

Want to know more? Contact us at (919) 443-9114 or