Rent-to-Own

Phoenix Metro Area lenders are tightening their lending practices. It is increasingly more and more difficult for home buyers to get loans.

Now 100% loans, or ‘majority financing‘ is a very limited option, buyers and sellers have to be creative to get real estate transaction closed. It's is not like it use to be w/ all those 80/20 and No doc loans..There gone

There are 2 Rent-2-Own options that may work; The Lease-option and the Lease Purchase.
A common name you may here these referred to is “Rent-to-Own” .


I have to recommend that you do not attempt this without the advice of an experienced attorney and/or real estate professional.
I just rented a home out for an investor I work with and the couple renting the home told me that they lost $15,000 on a rent to own. The owner went into foreclosure. She had tears in her eyes, I felt so bad for the couple. This happends all the time.

Lease option - “contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance”

Lease Purchase - “a Lease to Purchase contract combines a basic lease contract with an option to purchase contract, which creates a Lease to Purchase contract.” The main difference being that the lease purchase contract, the Buyer is obligated to buy; if not, the buyer would likely be in breach.

Again, both contracts can provide language where a portion or all of the rent payments can go towards the purchase of the home. Thus, allowing the buyer to accumulate down payment to more easily obtain a loan.

Hire a real estate attorney or experienced real estate professionals who can prepare documents, explain and protect your interests.

If you would like more info on Rent-2-Own, lets do it the RIGHT way.
Give me a jingle 602-391-8246 Linda