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what are the advantages and disadvantages of going into a rent to own or a lease to own program 2 buy a house?

Public Comments

1. I'm going to go out on a limb here and say that the seller is going to want you to pay more for the house in the future than what it is worth now. The difference between then and now (appreciation) is unknown. I also am going to assume that the seller will want you to pay taxes, insurance and maintenance on his property while you rent/lease it. Should the value of the house increase to above what the landlord thinks it will be, then you have made a good investment- but don't forget to consider the expenses you pay as a buyer that a renter would not have to pay for. I feel this type of no money down kind of thing is targeting people who need the most help. I say do whatever you can to improve your credit, and wait for a good deal from a distressed seller. Playing the lease/buy game is too much in favor for the seller, in my opinion. It's good to be thinking about it, and you'd be surprised sometimes how little money it can take to actually buy a house- but then you have to keep paying for it, that is where you find money by buying houses from distressed sellers, by in some cases just taking over the payments, you can own something. good luck
2. The main advantage is you get first shot at buying the house. Each rent to own lease can be structured a million different ways. The only real reason for doing it is that you love the house or love the price and terms of the offer. The disadvantages would be in the details of the offer. For example if your true rent costs is higher then the market or if you would lose any accumulated deposit if you don't buy the house at the end of the lease. Also in the current housing market the price is very tricky because the current market trend is down for real estate so the last thing you want to do is agree on a price for a future purchase unless it is discounted by 5 or 10 percent.