Rent-to-own is a great option for people who want to be homeowners but still need to qualify for a mortgage. They can improve their credit, pay down debt, and save for a down payment while living in a home they plan to buy.

It can also make sense for sellers who need time to devise a down payment and improve their debt-to-income ratio for mortgage financing.

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Lower Monthly Payments

Sellers offer rent-to-own deals to attract qualified buyers who may not qualify for a mortgage due to low credit scores or a lack of money saved for a down payment. Sellers often set a percentage of the lease payments aside to apply toward the home’s purchase price at the end of the term.

Depending on the contract, you might be responsible for random repairs and homeowners association fees while renting to own. It’s important to read contracts carefully and consult a real estate attorney before moving forward.

To be eligible for a mortgage loan after the lease expires, you may seek advice from real estate experts at businesses like Lang Estates – Your Local Realtor, to pay off debt and improve your credit score. When you’re prepared, compare mortgage lenders to get the best offer. You may compare choices using online tools like a mortgage calculator. Other recommendations include a thorough house inspection and working with an experienced real estate lawyer.


What is rent to own program? Rent-to-own programs can allow you to “try on” a home without making a large payment upfront. Some of your lease payments may go toward a future down payment. You can also build equity in the property through a rent-to-own contract if you decide to purchase it at the end of your lease term.

The flexibility of a rent-to-own agreement can make it easier for people who might need help qualifying for mortgage financing due to a low credit score or lack of savings. A rent-to-own agreement can give you time to pay off debt and improve your credit score to qualify for mortgage financing later.

A lease-purchase option is the most common type of rent-to-own contract, which allows you to buy the property at the end of the term. However, if you decide not to purchase the home at the end of your lease, you’ll forfeit any money you paid toward the home’s purchase price.