Rent and own can help you own a house in stages. Everyone dreams of owning a house, but money is a constraint. Suppose you do not have the money to purchase a house or to pay for a loan down payment, you can turn to rent and own option. Lenders reject loans due to bad credit ratings, for them rent and own is god sent relief. The concept is very simple you need to look for a house which suits your requirements and budget and rent the house by paying a small down payment. You need to pay monthly rents which also go towards the down payment of the house. After you save the required amount for the house you can pay for it and register the house in your name. The concept is very similar to your instalment purchase of home appliances, you pay a down payment and balance in monthly instalments and the item is all your. But until the full payment is cleared the house cannot be transferred to your name.

It is different from a lease option, in a lease the house will remain with the owner and the renter cannot claim the house at any stage. The tenant can only stay in the house and has no right to the house. Whereas, in a rent and own scheme the renter stays on the property with a hope of becoming a prospective owner sooner or later. A person having problems in qualifying for a loan can exercise this option as it the most convenient way to own a property. The renter takes care of the house while on rent with an expectation that he might own it one day, which is not the case in a normal rent situation. The owner can be rest assured that his property is in safe hands. The down payment is non refundable and therefore it is advised to select the right property before signing the contract. Always remember that the property would be yours, so choose the locality and the house with utmost care. Any wrong decision and you forfeit your money. It is not a security deposit; it is a non refundable down payment.

Suppose your monthly rentals and down payment is made within the stipulated period than you own the equity before even owning the house. This is the advantage of the scheme. The buyer and the seller can save on the realtor commission as the house is sold to the renter and no third party is involved. The saving can also be transferred to the buyer by reducing the price of the property or giving attractive incentives to the purchaser. The owner also has a satisfaction that they have sold the house to a known person who can take care of the property as well as be part of the community. The renter makes necessary improvements to the property too. Hereafter, do not worry about your bad credit ratings that are blocking you from owning a house. Choose the rent and own scheme and be a proud owner of a house.