RentToOwn-HouseFinder.com

How does "rent-to-own" work (buying a home)?

My husband and I have enough for a down payment and the amount we pay for rent would be more than enough for a rent-to-own payment.....but our credit is horrible. We have stuff in collections, etc etc. Could rent-to-own be an option for us??

Public Comments

1. Have the seller or agent run your credit and let them review it in detail. Some negative items will "go away" after a period of time, but collections will remain until they are "written off" which could be some time. The purpose of a rent to own is to allow the buyer to correct the credit problems by a date certain. Ask the seller or agent "what are our chances of getting a mortgage and the end of the rent to own period? There is no guarantee you will get one, but you should get a pretty good idea. realtor.sailor
2. yes a portion of your rent is usually put in to a escrow account to be used as a down payment when your lease is up.Its some times 2 to 4 years the idea is you treat the house as yours and then buy it at the time the contract says.This is to give you time to correct your credit and get as much money into the escrow as possible.I would save the down payment in a separate account so its safe and only use it when you are sure you want this house.If you end up not buying it you forfeit your money so do not put your saved money into it until you have to,