RentToOwn-HouseFinder.com - What is the real deal with rent-to-own houses that are cheaper then smaller apartment rent?

What is the real deal with rent-to-own houses that are cheaper then smaller apartment rent?

what is the catch?

many will do these as they think you will never fulfill the obligation. Most of these homes have problems so get an inspection done before you get involved
absurd prices are down to reasonable prices; that is the deal.
Well, I don't know if there is so much a *catch*, but the truth is, most rent to own or lease with options never lead to a sale. Most of the time, at the end of the option, the renter still cannot get financed due to their credit or down payment issues. Usually, you will be required to put anywhere from 1 to 5% of the house price down as option money (down payment if you actually buy) and, your payments will be about 10% of the purchase price. Usually a portion of the *rent* will be set aside in an escrow account as a rent credit and at the end of the term (most run 24 to 36 mos) that rent credit plus the option fee can be used as part of the down payment on the house. If you cannot get financing at the end of the term, and the owner does not let you extend it for another year or two, you lose your option money and any rent credit you built over term of the contract. It is a viable option for people who are serious about getting their finances in order and find a house that is offering this that they want to buy. Be sure you get a real estate lawyer to look over the contract, make sure you set the price for the home when you write the contract and be sure that the owner still is responsible for major repairs.