One of the popular creative financing methods is "Rent to Own". Also known as Lease to Own, it allows tenant to buy the property at the end of the predetermined term. In some cases, buyer collects a deposit upfront to secure the transaction and offers a rental credit to help the buyer to accumulate down payment towards the purchase price. In other cases, deposit (or down-payment) is not required. This depends on the relation, payment record, and credit history of the tenant/buyer. One of the advantages of Rent to Own is it creates a Win-Win situation to the seller and buyer. Buyers with bad credit get to buy their home, while sellers have a well-planned exit strategy. If you only rent, your payments will go down the drain. Lets not forget the market appreciation and mortgage pay-down (rental credit accumulation). If you heard some rumors that your friend's friend had trouble with a Rent to Own contract he signed, it is probably true. Rent to Own financing could be tricky if you are not informed to the last point on the contract. One must extremely cautious on signing documents without the review of a legal attorney. People are likely to rush in when giving big decisions in life. Let's be honest, when we are buying any other service or an ice crusher for instance we make hours of research, read thousands of comment and then take the final step. Why not have your paperwork reviewed once by a professional? Try to save couple of hundreds might cost you thousands in future. Overall Rent to Own is perfectly legal and makes sense for people with bad credit or no down payment. If you are in Alberta and looking for Rent to Own in Calgary, a solution to your housing problem read our free e-report on Rent to Own Houses.
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