“There are many benefits to a rent to own agreement when it’s done with a reputable company like Rent To Own Homes. We’re with you all along the way during the process. Read below to see how the process works!”

– Rent To Own Homes

How Does A Lease With Purchase Home Agreement Work?

The rent-to-own process is actually pretty simple.

  1. Join our property list and tell us what type of home you’re looking for, your budget, etc (START with the form to the right)
  2. We’ll send you local Available rent-to-own / lease option homes that fit your criteria.
  3. If you like a home and want to apply, we’ll give you an application to fill out. Don’t worry – we help people with all kinds of credit and financial situations, and if you can afford the property, we can probably help you to own it.
  4. After you’re approved to rent the property, we’ll agree on a monthly rent amount and future purchase terms.  Then just sign the documents and move on in!
  5. Move in and pay your rent payments on time… then at the end of the rental agreement, you can decide if you want to purchase the home or not.

THERE IS NO OBLIGATION to purchase the home after the rental agreement expires.

How Long Are Rent To Own / Lease Option Terms?

Your lease/option agreement (also known as the rent-to-own contract) will spell out the length of time that you have to complete the purchase of the property – typically 3 years, but in certain circumstances, we may extend your option if you need more time to get your credit or downpayment up to the point where you can qualify for a bank loan.

The purchase of your home usually takes place through a traditional mortgage loan, but there are other ways to complete the purchase, depending on your finances.

Finding a path to homeownership can feel like a marathon, especially if you aren’t quite ready for a massive down payment or a traditional mortgage today. If you are currently searching for apartments near me but dreaming of something more permanent, a rent-to-own (or lease-option) agreement might be your perfect bridge.

Here is how the process works and how it can help you transition into one of the many beautiful townhomes for rent in your area.

1. The Option Agreement

Unlike a standard lease, a rent-to-own deal consists of two parts: a rental lease and an “option to purchase.” You move in as a tenant, but you pay a one-time “option fee.” This fee is typically non-refundable, but it gives you the exclusive right to buy the home at the end of your lease term, usually three to five years down the road.

2. Building Your “Rent Credit”

This is the most exciting part for future buyers. Each month, a portion of your monthly rent payment is often applied as a rent credit toward your eventual down payment.

  • Example: If your rent is $2,000 and you receive a $300 monthly credit, you’ll have saved $10,800 toward your home purchase after three years—simply by paying your rent on time.

3. Locking in the Price

One of the biggest perks is the ability to lock in a purchase price at the start of your lease. If property values in the neighborhood skyrocket while you are renting, you still get to buy the home at the price you agreed upon years earlier. This allows you to build equity before you even own the deed.

4. Time to Prepare

The rental period gives you the necessary time to polish your credit score or save additional funds. When the lease ends, you use your accumulated rent credit to help secure a traditional mortgage and officially move from “tenant” to “homeowner.”

That’s the process!

Once you’ve completed your mortgage, you’re done – now you own your home!

First step – sign up to find great properties around Available just by filling out the form on the upper right of this page.