Rent to Own
Home ownership is an important feature of American life. It can help families by providing long-lasting freedom from housing insecurity. You can participate in a program that will allow you to eventually buy the home you currently rent. The Rent to Own Program helps you place your monthly rent payments toward a mortgage, which will allow you to eventually pay off the balance of the house and obtain the deed to the home. Some programs renovate dilapidated homes and make them available to families as low-cost rent-to-own opportunities. Families who want to repair their rental homes can also apply for assistance with completing repairs and then begin the process of home ownership.
Benefits of Rent to Own
In contrast to traditional mortgages which require a mortgage lender, rent-to-own arrangements allow you to begin the journey of home ownership by converting your rent into payments toward the total cost of the house. The rent-to-own terms usually have a fixed time limit for payment. The purpose of the program is to allow low-income residents to use their rent toward a down payment on their home. Placing at least a 20 percent down payment on a home can tremendously decrease the interest rate and expenses of the home-buying process.
How to Apply
You can search for programs in your area to find participating rental agencies. To apply, you must meet income requirements designated for low-income and moderate-income families. Additionally, you must currently reside in a single-family home you wish to own. You must also agree to live in your rent-to-own home as your primary living space. Requirements such as a verification of your employment status, a check of your rental history and your enrollment in educational courses on home ownership may also be required to apply.