: You pay monthly rent, which often includes a "rent credit" or premium above market rate. This extra amount is set aside in an escrow account to eventually go toward your down payment.
: You either exercise your option to buy (requiring you to secure a traditional mortgage) or walk away, depending on the contract type. Types of Contracts rent to buy homes
: You typically pay a non-refundable "option fee" (usually 1% to 7% of the home's value) to secure your right to buy the home later. : You pay monthly rent, which often includes
: This is a binding legal contract that obligates you to buy the property when the lease ends. Failing to purchase could result in legal action for breach of contract. Pros and Cons Rent-to-Own Homes: How the Process Works Types of Contracts : You typically pay a