Interested in Rent-to- Own? | New Homes & Condos-Tony Miller Rent-to-own offers individuals and families (who are called tenants in this article) who are unable to qualify for a mortgage the opportunity to become home owners. Typically, the tenants are unable to qualify for a mortgage because of poor credit or are self-employed. Rent-to-own is sometimes called lease to own and is comprised of two parts: the rent part which is when the tenants live in the home that was purchased by an investor, and the ownership part which is when the tenants exercise their option to buy the home from the investor. While renting the home, the tenants work with financial professionals to repair their “bruised credit” and increase the down payment that is needed until they can qualify for a mortgage and buy the home from the investor. Most RTO programs last 2 or 3 years but the duration can be shorter or longer depending on the situation. Here is some general information about how rent-to-own wor...
