Why Rent-to-Own Is usually Too Good to Be True

Aspiring homeowners with lousy credit, no amount of money for down payments, or just plain low incomes could have a difficult time buying a home-particularly as buyers with deeper pockets compete for the small selection of properties for sale. That’s why it may be so easy for them to be lured in through the promise of rent-to-own properties-a fast-growing but slightly sketchy segment of the consumer housing market. In these types of programs, tenants who can’t qualify for a mortgage will make monthly payments on a home they’re renting with the promise of owning it after a set number of years-usually between five and 20 years of payments. The payments will often be higher than local rents, because tenants are essentially purchasing the property from their landlord eventually. Oftentimes, they’re also liable for making repairs on the homes. See why here