During the home buying process, there are times when you wish you had just a bit more time; time to build up your credit score or save a bit more for a down payment. If you’re not quite ready to buy a home, but the home of your dreams is on the market now, you might have another option. It’s called a rent-to-own or rent-to-buy-contract.
In this article, CBN news gives compelling reasons to consider a rent-to-own agreement and a few reasons to think twice about signing one.
In a rent-to-own arrangement, the potential buyer agrees to rent the home for a given period (typically 1-3 years). At the end of the rental period, the renter will either have the option to buy the house or be obligated to do so, depending on the terms of the agreement.