A Rent-To-Own (RTO) transaction is where you would rent a home just like any other lease agreement, but the biggest difference is that you have the option to buy the home at any time during the lease period for a fixed price.

RTO is a short-term strategy designed to get you into a home right now that you plan on buying in the future.

The lease agreement is set for a fixed period of 12-36 months. The purchase price is fixed, and will not change for the duration of the lease. Any future appreciation will be yours to keep.

A portion of your rent payment will be credited toward the purchase of the home which would allow you to build equity while you rent. This is called Rent Credit, and your rent payment must be received ON TIME every month to take advantage of this.

An option payment (aka down payment) is required to move into a RTO home. The amount is flexible depending on each individual situation, and this payment is 100% applied towards the purchase price of the home when you buy.

The end goal is for you to get a regular mortgage to buy the home, and during the lease period you have time to work on any credit or financial issues that are keeping you from getting a loan right away.