How does the rent to own work?

Question

What's better, to rent a house or to buy one, and make paying on it?

Answer 1

depends on whether you want to stay in that house a while; sometimes,

people love their home and then, get transferred and want to sell

quickly and have to take a loss.

they should keep and rent it out.

so, buy!!!

Answer 2

Buying or renting is highly debated, and depends mostly on your situation. Are you staying in the same place for a long time? Are you financially comfortable enough to buy a house, and pay all the associated fees? (HOA fees, taxes, insurance, etc).

Rent to own usually works like a regular rental, with an option to buy the house after a year or so. It usually requires a larger deposit than a normal lease, and is normally non-refundable. You may lose your option to buy if you break any part of your lease, forfeiting your deposit.

On the other hand, it's a good way to see if you're ready, and may require less credit checks and income verification than a regular loan, and after the year, you can go to your bank and prove that you've been making the payments.  

Answer 3

very few rent to owns are legitimate and none of them ever come to a satisfactory conclusion for either the buyer,the owner or middleman who is renting to own the house to you. In most all cases its a scam to bilk as much money out of someone before the mortgage holder forecloses and the rent to own victim loses his down payment and all the rent he/she has paid to date. The middleman flipper pockets the money and giggles.

either be a renter ( the lender may still foreclose but at least you do not have serious money invested ) or buy the traditional way with your own loan and feel secure you will not be evicted if you make the payments.