Rent-to-Own House Information

When purchasing a house is not a viable option, a rent-to-own agreement may be beneficial. Rent-to-own agreements give the renter the time needed to save for a down payment or improve her credit score. Learn more about rent-to-own houses before entering into a binding agreement.

Locating Properties

Rent-to-own houses can be found on Multiple Listing Services (see Resources) and through realtor listings.

Advantages

The advantages of a rent-to-own house include the opportunity of future homeownership without qualifying upfront for loans. The landlord is given the ability to pay mortgage on the property from the rent income as well as a contract for the eventual sale at the end of the lease.

Lease Agreement

A rent-to-own agreement on a house usually includes the basic lease agreement along with an option or addendum to purchase for an agreed-upon price, earnest money deposit and down payment amount.

Disadvantages

If a renter does not exercise the option to purchase the property at the end of a lease, she may lose the right to purchase the home and any amounts paid into escrow for the intent of a purchase.

Professional Advice

Before entering any agreements, enlist the professional advice of a realtor and an attorney.

References

• Multiple Listing Services
• HUD Renting Information

Resources

• Multiple Listing Services