--- title: "Rent to Own a Home: Is It for You?" description: Learn whether or not a rent to own house is right for you - including the pros and cons of renting to own. image: https://blog.homesandland.com/hubfs/Beautiful%20Outdoor%20Patio%20In%20The%20Backyard%20Of%20The%20House.jpg --- [![Homes & Land](https://blog.homesandland.com/hubfs/Images/hnl-logo.svg)](https://www.homesandland.com/) - [Homes](https://www.homesandland.com/homes) - [Rentals](https://www.homesandland.com/rentals) - [Agents](https://www.homesandland.com/agents) - [Commercial](https://www.homesandland.com/commercial) - [Open houses](https://www.homesandland.com/open-houses) - [Land](https://www.homesandland.com/land) - [Mortage](https://www.homesandland.com/mortgage) - More [Rentals](https://www.homesandland.com/rentals) [Agents](https://www.homesandland.com/agents) [Commercial](https://www.homesandland.com/commercial) [Open houses](https://www.homesandland.com/open-houses) [Land](https://www.homesandland.com/land) [Mortage](https://www.homesandland.com/mortgage) - [Log in](https://www.homesandland.com/account) - [Blog](https://blog.homesandland.com) - [Advertisers](https://advertise.homesandland.com/advertise) [How a Realtor Makes Home Buying Easier](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) Buying a home is one of the most significant financial decisions you’ll ever make, but the process... 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But if you don’t have good credit or enough money for a down payment, you could find yourself out of luck – unless you sign a rent-to-own deal with the seller. ![Gorgeous Home At Twilight](https://blog.homesandland.com/hs-fs/hubfs/Gorgeous%20Home%20At%20Twilight.jpg?width=1200&name=Gorgeous%20Home%20At%20Twilight.jpg) ## The Pros of Rent-to-Own Houses In a rent-to-own or lease option deal, the tenant pays for the privilege of having the first chance to buy the home from the seller at the end of the lease, which usually lasts three years. The tenant and the owner agree on a purchase price at the beginning of the lease and the tenant pays the owner an option fee of 1 to 5 percent of the purchase price. The seller credits the tenant with the fee against the price of the home when they finalize the sale at closing. Sellers – or landlords – increase their pool of eligible buyers by including those who may not qualify for a loan right now but will in the future. Plus, the seller earns market rent – plus a little extra (called the rent premium) – during the course of the lease. Sellers also don't have to pay a [real estate agent](https://www.homesandland.com/sitemap/agents) fee, saving thousands of dollars. They also eliminate the hassles of endless showings. ![Lving Room Couch With Pillows](https://blog.homesandland.com/hs-fs/hubfs/Lving%20%20Room%20Couch%20With%20Pillows.jpg?width=1200&name=Lving%20%20Room%20Couch%20With%20Pillows.jpg) Tenants benefit because they get extra time to increase their savings and improve credit scores. Sellers help tenants save by crediting both the option fee and the rent premium at closing. Plus, they get upside protection – a terrific benefit if prices increase significantly over the course of the lease term – and they don't have to move twice. While somewhat unorthodox, renting to own offers the right parties significant advantages. Speak with an attorney to decide if renting to own a home is right for you. 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From finding the right property to… [Read More »](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) ## [13 Cities That Will Pay You To Move There](https://blog.homesandland.com/13-cities-that-will-pay-you-to-move-there) The physical act of moving is often a hassle. But starting over somewhere fresh and new can be super exciting. The downside? The cost. Unless you have an… [Read More »](https://blog.homesandland.com/13-cities-that-will-pay-you-to-move-there) ## [5 Benefits Of Living In The Countryside](https://blog.homesandland.com/5-benefits-of-living-in-the-countryside) Are you over the hustle, bustle, and cost of city living? What draws us somewhere at one point in our lives can easily change over time. 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