Renting to Own could be the best thing that has ever happened to you - or it could be something you want to steer clear of.
Some of your reasons for renting to own might be due to any of the following:
Renting to Own usually entails you deciding to purchase a home, directly from the owner at a fixed price. The writing of the "sales contract" does not start until an agreed upon date in the future. The time between you signing contracts and the "date of commencement" usually has been determined by the time-frame it will take for your down payment to be gathered. The down payment is usually in addition to your rental payment.
So each month - if your rent is X amount of dollars - there will be additional monies that are required that will make up your future down payment.
There are very few owners that will "carry" their own financing AKA - Acting like a bank. Usually, at the end of the "rent to own" period - it is time to "own". You will then need to obtain financing from a "real" lender or bank, moving through a typical real estate escrow.
Here are some things you need to know:
If renting to own is your thing - contact a local Real Estate professional and have them reach out to their Sphere of Influence to find those Owners of Properties that might modify the above list of "things that you need to know".
Either way - if you have no credit or bad credit, those issues can be fixed. By taking your time, you are not losing out - Just get with good Advisor's (real estate agents and lender).
We talked a lot about Financing and how to get pre-approved or pre-qualified at our REMAX Relocation Blog - Please read this article and let us know what you think by commenting, facebook liking or tweeting.. LOL - Don't forget the Google+ :-)