Own your home sooner with rent to buy option is the right choice for first time buyers. Rent to buy is the easy way to own a house when in financial distress.  It is a lease agreement with an option to buy the property at the end of the term. The concept is very simple; you need to locate a house with rent to buy option in the locality you like. Then discuss with the owner about the down payment for the house and the monthly rentals. The down payment is usually three to five percent of the property price. The rentals are slightly higher as part of the payment goes towards down payment making it easy for you to pay the final amount. The term of the contract can start from six months to three years depending on the convenience of the owner and the tenant.

Rent to buy deal is advantageous for both the parties, all the terms and conditions are clearly drafted, and therefore either party cannot try to cheat the other. The house is leased for a particular term and can be sold once the term expires for the current market value. The owner of the property benefits from the deal during lean season, when the real estate market is dull, properties do not fetch the required amount and they sit on the market for a long time, blocking the cash flow of the owner. During this period if the owner adopts rent to buy option, the property can earn money through rentals; in the meantime the buyer also is ready with the money when the markets pick up after few months.

Rent to buy option is usually opted by individuals who have poor credit scores and no money for bank deposits. These people find breathing gap to correct their credit scores and save money for the deposit. Once the period of contract expires they become the owner of the house, which would not have been possible otherwise. The owner can be rest assured that his house is in safe hands, as the tenant is the prospective owner of the property, he takes care of the house. Maintenance and repairs are borne by the tenant and the owner is relieved of all the hassles. You should stick to the contract terms to own your home sooner with rent to buy option. The tenant should get the money ready before the term expires; else he tends to lose the house and all the money he had paid in the form of down payment and rentals. Therefore, only if you are sure of pooling in funds to buying the house should you enter into such an agreement. Sometimes the tenant can end up buying the house cheaper than anticipated based on the market condition.

Instead of paying rent and remaining a tenant all your life it is advised to own your home sooner with rent to buy option.