There are various options for those willing to purchase real estate but cannot afford to render the down payment right away. Rent-to-own is one of these options. The process requires regular payments for the property that eventually lead to the complete purchase as the payments are partially added up against the final sales price. Note that the rent credits are agreed upon with the owner and are paid separately, as the contract is initially a lease agreement with certain modifications.
Normally rent-to-own contracts require tenants to rent the property for a specified period, while the purchase feature is sometimes optional. The price may also vary from being fixed to appraisal-based. For more information on rent-to-own contracts, please proceed to our blog: How does rent-to-own work?