Creative Financing Part 2 Rent to Own Rent to own is a very different way to buy yourself a home.
The Rent to Own method had its pros and cons just like anything in life.
Some of the pros are you get into a home and even though you are still a tenant you have the intention of making it your home.
Right from day one you can feel good about any home improvements or changes to the property.
You can not go over board on this, since you are still a tenant, but with agreements from the landlord you can do quite a few things.
A drawback to rent to own is slightly higher rent, and having to put up some sort of option money.
This is not a down payment, but a nonrefundable deposit that holds the property for you.
Another positive outlook is you can negotiate a price on the house and two or three years later when you buy the house you will have equity in your home from the minute you take ownership.
It is possible you could have enough equity that a down payment would not be necessary, but don't hold your breath.
The biggest drawback I see to doing a rent to own is finding a vendor that will let you do this.
You are almost better off finding someone yourself who can buy the property then you do a rent to own from them.
Very similar to a JV partnership, in that you find someone to help you out, but this way after 2-3 years when you get your mortgage you own the house yourself outright (minus the bank of course LOL).