Asked in Apartments and Home RentalsMortgagesHome BuyingLandlord-Tenant Issues
Apartments and Home Rentals
What is rent to own a house?
May 27, 2007 8:18PM
Rent to own means that all the payments you make to your landlord go towards paying off the house. If you rent long enough, the house will be paid off and they will make you the owner.
How does a rent to own for a house work?
It's pretty risky. When you move into a rent-to-own house, you generally pay an "option fee" of 1-2% of the house price. Then, if you rent the house for the term, you get the option to own it. Be aware, however that if you leave the house or violate the lease, you lose your option fee and the time invested, leaving you with no equity.
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