How it works!

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familyThe future homebuyers (sometimes also called tenants) first pay a nonrefundable option fee that will be applied to the final purchase price of the home. The homebuyers/tenants will then begin paying the person selling the home (or landlord) a monthly fee (rent) to live in that particular property for a contracted period of time (lease). In many cases, part of the monthly rent will be applied to the down payment or final purchase price of the home.

At any point during the lease (usually a twelve to thirty-six month period), the homebuyers can purchase the home from the seller (landlord) for the amount both the homebuyers and seller originally agreed upon.

  1. A “rent to own” scenario is perfect for people who want to stop throwing their money away month after month by renting an apartment or house, and start building equity by purchasing a home of their own.
  2. A “rent to own” scenario is equally perfect for people who are selling their property, as they will secure a “top dollar” final sale price, and potentially pocket more money by avoiding realtor commissions.
01/21/2009@11:44 pm