Hope that helps.
Renting-to-Own can place you on the right track to homeownership. Particularly, if you have limited funds for your downpayment. With today's real estate market aggresively rebounding via FHA lending, you can find yourself in a purchasing position with a downpayment as little as 3.5% of the purchase price. For example, in purchasing a $200,000 home, you would only need approximately $7,000 toward you downpayment + an estimated $4,500 in expenses in obtaining your new loan (I.e., Appraisal, Inspection, Service Fees & etc.). All considered, this is where Renting-to-Own benefits you.
In a Rent-to-Own scenario, you would be able to have a portion of each monthly payment accrue as your downpayment. In such a case, the proposed Seller would have an agreement drafted, that sets the future purchase price of the home (Negotiated of course). You would then take possession of the property as a tenant, but remain vested in the property as you move forward. It's a wonderful way to position yourself for ownership. The Rent-to-Own option can also be great for you, should you need the time to repair or improve your credit rating, which is important in obtaining the best possible rate for you new home loan. It'll also allow you the time to solidify your job situation, and ensure that you find the perfect home that fits your needs.
I hope you find this information useful. Should you like to discuss your options further, you can feel free to contact me at 310-218-9058 or via email at jimmydwilliams@pruCArealty.com. As a Broker Associate with Prudential CA, I would excitedly take the opportunity to refer you to one our professionals in the area of your choice. While I am located in Long Beach, CA, Prudential CA has a large footprint throughout CA, and is quite capable of rendering you the superior customer service you deserve. Happy hunting...Jimmy D. Williams