The current state of the mortgage industry has many people seeking alternatives to traditional financing in order to achieve their goal of owning a home.  Many more people are considering the option of getting a rent to own home than in years past.  If this is an option that you are looking into, you may run across people who tell you that the rent to own option is only beneficial for sellers.  Although this is no longer the case, when homes were selling quickly most rent to own deals were heavily weighted in the favor of the seller.  Otherwise, why would they have considered this type of transaction?  In the current market where homes are not selling, many sellers are willing to work with you to create a situation where you both win.

A rent to own home can benefit you as the buyer for many reasons.  Let’s look at a few of them.  When you rent to own home, you begin to build equity in the home immediately.  A part of your monthly payment will go towards the purchase price of the home.  This is called a rent credit.

If the home increases in value, you stand to benefit from this.  Because the purchase price will be stipulated up front, you stand to benefit if the home appreciates beyond this point.  Thanks to the rent credit and appreciation, you may not have to come up with any additional cash out of pocket when you go to get a loan.  This is a key benefit that can help you become a home owner.

A key feature of renting to own that is attractive to many people is that it gives you the ability to move into the home now, and eliminates the chance of someone else purchasing the home while you are working on your credit.  This is because you have the exclusive option to buy the home until your option expires.  Clearly, there are many benefits of getting a rent to own home!

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