What is rent to own home contracts?

A rent to own contract is an agreement between a home seller and a home buyer to transfer the ownership of the home over a period of time.

Normally the buyer puts down an non-refundable deposit that is used as a portion of the down payment and makes monthly payments for one, two or three years in order to obtain financing.

The buyer then prepares to obtain the appropriate financing before the end of the contract term. If the buyer is unable to do so, the deposit is fortified to the seller.

These contracts help those with challenged credit get into a home without the need for a traditional loan.

Please check out this blog http://renttoowndeals4u.com/blog.htm. They have great articles on the process and the pitfalls.