Zillow Advice: Rent vs Buy - Rent to Own http://www.zillow.com/advice-thread/Rent-to-Own/489640/ Zillow Advice | Zillow Real Estate While the theoretical concept ... http://www.zillow.com/advice-thread/Rent-to-Own/489640/ While the theoretical concept of rent with the option to buy may seem attractive, some of the realities are considerably less so.<br/><br/> Owners who will consider rent to own are very rare, so it will cut down your options for properties considerably.&nbsp;&nbsp; I consider it much smarter to spend a year or two working on improving your credit and (if necessary) saving up a good down payment.&nbsp;&nbsp; Yeah, it is tough to move but it even tougher to lose a lot of money attempting to buy.<br/><br/> Some features of rent to own:<br/><br/>1.&nbsp; Down payment required - often substantial (say 10% to 20%) and is non-refundable if the potential buyer doesn't purchase.<br/><br/>2.&nbsp; Monthly rental is above fair market rent, with the only amount going to purchase is the amount above the fair market rent.&nbsp; This is also not refundable.<br/><br/>3.&nbsp; If not qualified for financing at the agreed upon&nbsp; time and price, then you lose everything.&nbsp;<br/><br/> 4.&nbsp; The price is agreed upon at the beginning of the contract, and who knows where house prices are going.<br/><br/> 5.&nbsp; You still depend on the owner to pay their mortgage.&nbsp;&nbsp; If they fail, you lose.<br/><br/>If you do get involved in this, please involve an attorney in the contract.&nbsp;&nbsp;&nbsp; It is a great way to lose money, so be very careful.<!--[if gte mso 9]><xml> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="&#45;-"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> </xml><![endif]--><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-style-parent:""; line-height:115%; font-size:11.0pt; font-family:"Calibri","sans-serif";} </style> <![endif]--> Fri, 26 Apr 2013 20:50:00 GMT http://www.zillow.com/advice-thread/Rent-to-Own/489640/ 2013-04-26T20:50:00Z Good Morning,Feel free to ... http://www.zillow.com/advice-thread/Rent-to-Own/489640/ Good Morning,<br/>Feel free to contact me to discuss why you would prefer a rent to own. Tim &amp; Rachel are correct, they are few and far between and usually cost more. It may be better to do what needs to be done to get you in shape to purchase outright.<br/><br/>Thanks! Fri, 26 Apr 2013 17:50:00 GMT http://www.zillow.com/advice-thread/Rent-to-Own/489640/ 2013-04-26T17:50:00Z Rent to own is almost an ... http://www.zillow.com/advice-thread/Rent-to-Own/489640/ Rent to own is almost an urban myth and they are horrible deals to get involved with, so just forget it. rent or buy but stay away from rent to lose. Fri, 26 Apr 2013 12:54:00 GMT http://www.zillow.com/advice-thread/Rent-to-Own/489640/ 2013-04-26T12:54:00Z