Rent to own is one of many programs Breezeful offers their customers as a path to homeownership. To simplify, you rent the home for a set amount of time with an option to eventually buy it before the lease expires. In some cases, a percentage of your rent payments can go towards your down payment.
The tenant has to pay an initial fee: often 1-2% of the purchase price, much lower than what a down-payment for a mortgage might be.
Because the initial payment is quite low compared to a down payment, the monthly payments are usually a bit higher to offset that. Additional costs include normal home ownership costs, like repairing a roof or furnace.
If you are self-employed or receiving unconventional income, a rent to own program might be right for you. Also, instead of requiring the entire down payment, you can provide a small deposit with each rent payment contributing to your down payment when you eventually buy your home.
When compared to a mortgage, rent to own programs are more flexible on their credit requirements.
For those with less than ideal credit, going with rent to own is a good option to lock-in a home until you have improved your credit enough to get a mortgage.
With Breezeful, when we pre-qualify you we check your eligibility for both rent-to-own and mortgage pre-approval options.