How Does this Work

Rent-to-own allows tenant buyers to rent with an option to buy at a set price, using a deposit that applies to the purchase. It grants equitable interest but not title, with options to sell or buy, refinance, or transition to seller financing after meeting conditions.

Seller financing differs by providing title and amortized payments, but it's not offered upfront due to seller risk. "Tenant buyers" must first prove reliability through consistent on-time payments, typically for 13-36 months.

Rent-to-own agreements are for three years, with annual renewals, and deposits ranging from $3,500 to $5,000. Qualification is based on background checks and rental history, though credit scores aren't a major factor.

To qualify for seller financing, you need an 80% on-time payment rate. Deposit requirements will depend on how many payments have been late. After 2 years with no more than 3 late payments, the deposit is waived.

Payments mirror future mortgage costs, factoring in taxes, insurance, and interest. Rent-to-own payments adjust yearly based on escrow changes.

The program aims to make homeownership accessible with fair terms, low barriers to entry, and incentives for responsible buyers.