There are numerous paths to homeownership. In today’s market, your choices in homeownership may be limited if you are short on cash or have poor credit. An option you might want to consider are rent-to-own homes. Rent-to-own homes allow you to continue renting, while working toward your goal of homeownership.
A rent-to-own home is an opportunity to rent a home with an option to purchase the home at the end of the lease. A rent-to-own contract, otherwise known as a lease-option agreement, contains the terms that are agreed upon between the seller and the buyer. Upon the signing of the agreement, you will be on your way to the exciting journey of owning your very own home.
Below are typical elements found in a contract:
Another option you may want to consider is renting a home. Spending money on monthly rent may not be your best choice. At the end of your rental period, you will not gain any equity. The rent or buy calculator found at the New York Times website might help you in your decision-making process when considering what is best for you when you are seeking out a new home.