My Personal Experience with Rent to Own Home Programs

In today's economy many people are finding it almost impossible to get a home loan. They are turning to rent to own home programs a method of achieving their goals. If handled properly the rent to own home experience can be a win-win situation for both the buyer and the renter.

For the renter a rent to own home program provides them with the opportunity to get into a home with poor or no credit. In most cases the rent costs are far less expensive than the mortgage payments for a similar home. This allows the renter to save money and gives them the ability to purchase the home faster than they would in a conventional mortgage situation.

The renter also benefits from having the time to repair or improve their credit score, their home's equity grows faster because part of their rent is applied directly to the purchase of the home, and there is an escape clause so if at the end of the rental period they decide they don't want the house they can get their money back, less the down payment.

Not all rent to own experiences have happy endings. When my former husband and I went house hunting we found an owner who was willing to make a rent to own arrangement with us. We were young and ignorant of how this should type of agreement should work. We paid our rent every month assuming that part of this money was going towards the purchase of the home. Being trusting souls we'd made this agreement with a handshake, not a contract. The owner lived out of town and was quick to cash the checks and money orders.

Imagine my surprise when I answered a knock at the back door to find a dozen Realtors who'd arrived for the open house. I told them they must have the wrong house and asked them to leave. They were back an hour later and informed me that I was wrong. The owner was selling the house and we had no recourse whatsoever available to us. We had no choice but to move out.

This is not the only case of a rent to own home experience going south. Owners have lost their homes when renters haven't kept up their payments. Renters have found themselves evicted at the whims of unscrupulous owners. Know your rights and read the contract thoroughly.