For many people, owning a home is just a distant dream. The good news is that rather than just own, you might have another option of rent to own. In this case, if you are not financially in a position to buy or simply do not have good enough credit, you would work out a deal with the homeowner whereby a portion of your rent is used as a down payment on buying the house.
You will find a number of homeowners or sellers in a position to accept a rent to own. With this, the person renting actually occupies the residence while a formal agreement has been established to ensure the deal is legitimate. Typically, the contract would read that during a specific timeframe, the renter could decide to buy or not buy. Keep in mind that the renter is not obligated to buy but the opportunity is there. Additionally, the contract would protect the renter in that during this same timeframe, the seller cannot put the house on the market.
For many people, a rent to own situation is ideal. During the signing of the rental lease, both the seller and the renter would agree on a purchase price for the home. That means if the renter had a one-year lease, during that period the seller is not only blocked from selling but also raising the asking price to the renter. The benefit is great for the renter. During this timeframe, people can check out the neighborhood, schools, hospitals, shopping districts, and so on to see if this is indeed the right neighborhood for them.
Therefore, if you want to own a house, you might consider a rent to own. Sometimes, a contract will also have a clause whereby an extension can be added onto the original timeline. While not for everyone, a rent to own has allowed many people to finally, settle into a home, perfect for raising a family while getting out of the apartment life.