I would recommend you stay away from the "Rent to own" scenario. Often these deals end up very sour. Imagine all that can go wrong. Typically you pay a premium (Higher Rent) to allow partial funds to be set aside for a presumed down payment. You agree on a price, terms etc., But things change and change fast. I always ask the question "What If". What if the values go down, what is the go up, what if interest rates increase, mortgage insurance goes up, what if the home doesn't appraise during the purchase period, what if something major happens to the home, what if Fannie Mae, Freddie Mac stop allowing 3.5% down. All these can cause serious issues and a loss of your hard earned savings towards the home. These questions and hundreds more should be answered prior to any "Rent to Own" deal is made. The smart move would be to rent either month to month or for a shorter lease period and save, save, save. You will be surprised at how quick you can save 3.5% for a down payment.