You stare out the window of the car, envious of the beautiful homes with kids playing in the yard, moms gardening, and dads washing the family car. Buying a house is something you think you will never accomplish.

Not so fast!

There are options for getting out of your renting situation (or worse, moving out of your parents’ home!).

Having no credit or poor credit will certainly limit you when it comes to receiving a home loan. Sure, there are foreclosures or government loans, but you may not want to go that route.

Have you heard of rent-to-own? It can be a beautiful option for both home buyers and sellers. Let’s explore this option now!

The Best of Both Worlds

People often think homeowner’s don’t want to sell their homes under rent-to-own situations. In today’s market, sellers will do what they can to sign their property off to someone else. There are so many consumers who can’t get approved for a loan, so sellers are happy to have someone willing to just start the process.

Of course, rent-to-own is ideal for those who cannot get approved by a bank. Why not do something beneficial for both buyer and seller?

Many Advantages

For a buyer, rent-to-own has several positives aside from getting into a house. With a low credit score or no credit score, the only loan available will be full of fees and high interest rates. You won’t be subject to those in a rent-to-own arrangement. You can also use the rent-to-own alternative, and combine it with other home buying options.

Most importantly, while you are going through this type of purchase, your credit is improving. In the future, you will be able to receive the loan you so badly want.

No Strings Attached

Sure, you want a house – most people do at some point in their lives. However, having a large mortgage to pay off can be intimidating. With a rent-to-own arrangement, you can walk away if you are no longer able to make the payments. No harm, no foul!

The payments you make basically pay the current homeowner’s mortgage. Neither of you are out anything – it is similar to renting. The seller will put the house back on the market if you need to back out.

The money you put into the property will be forfeited to the homeowner under most rent-to-own contracts. Now, you are free to look for something else if the house, payment, location, or other aspect isn’t what you were expecting.

Rent-to-own can be perfect if you are considering buying a home but are not ready for the commitment. Test the waters, and move to another option without consequences if it isn’t what you expected.


Making the commitment of purchasing a home without financially backing can be overwhelming. Knowing there are other options should allow a bit of breathing room. Consider a rent-to-own situation before diving into a home loan. Find further details about this topic by getting in touch with our experts.

Are you someone who has utilized the rent-to-own process? What was the outcome? Let us know in the comments below.

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