That\u2019s exactly the dream that rent-to-own deals<\/a> are selling, but what\u2019s the catch with rent-to-own homes?<\/p>\n\n\n\n\n\n When considering a rent-to-own home, working with a real estate agent experienced in these types of deals can help you navigate the process and find a great deal.<\/p>\n \n Also known as a lease-purchase agreement, a rent-to-own contract<\/a> is an agreement between the tenant and the homeowner stipulating that a portion of the monthly rent is credited toward the future purchase of the property.<\/p>\n Then, when the lease ends \u2014 typically within 1 to 5 years \u2014 you\u2019ve saved up a credit with the homeowner that effectively serves as your down payment.<\/p>\n Sounds ideal, right?<\/p>\n A rent-to-own deal means you can start paying toward a home purchase even if you can\u2019t technically qualify for a mortgage yet.<\/p>\n \u201cMost people considering a rent-to-own purchase either don\u2019t have a high enough income or good enough credit to buy a house right now,\u201d says experienced Washington state agent Hao Dang<\/a>, who\u2019s sold over 76% more single family properties in the Seattle area than the average agent.<\/p>\n But renting-to-own isn\u2019t quite so cut-and-dried. There may be additional fees paid to the seller that will not count toward either your rent or your down payment, and you could also be on the hook for maintenance<\/a> and repairs<\/a> from the day you move in \u2014 but we\u2019ll get into more of all that shortly.<\/p>\n","protected":false},"excerpt":{"rendered":" Rent-to-own contracts sound good on paper, but you shouldn\u2019t sign one without carefully considering the potential drawbacks, too.<\/p>\n","protected":false},"author":37,"featured_media":45765,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,636,629],"tags":[802],"class_list":["post-13317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-rent-own","category-home-financing","tag-is-rent-to-own-a-good-idea"],"acf":[],"yoast_head":"\n![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
\n <\/div>\n \n Work With a Top Agent to Find a Rent-to-Own Home<\/h3>\n
Rent-to-own basics: Crediting rent toward a future purchase<\/h2>\n