Why Rent To Own Is So Popular in Housing Today

Many people have a dream of owning their own home. For those with less than perfect credit, trying to see that dream through to fruition may be more like a nightmare. One way in which they are able to realize the dream are lease options or rent-to-own homes. To the long term renter, the lease option is much like going through the process of closing. Personal financial problems such as poor or no credit, a history of a foreclosure, the loss or displacement from a job can make it very difficult to get their home loan approved.

Bloomberg reports from recent months show that more than sixty percent of the current housing market in the United States is owned by major banks or mortgage subsidiaries. Add to that the loss of home values which is currently estimated to be about 30 percent plus, and it will explain the vast array of lease applications that companies are receiving. According to John Hogue, who is a consultant for Rest Easy Home Solutions, “The housing market is going through a sharp decline and the data that we have witnessed in news reports backs up the theory of more people turning to renting instead of buying." The problem is that many of them are not in a position to pay a down payment or to achieve financing currently.

When the rent-to-own option or the lease option enters the picture there are far better chances that these people will be able to attain a home to buy since part of their payment goes toward future ownership of the home. With part of each monthly payment set aside toward the down payment on the home, even those with income problems or a history of credit issues have the chance to achieve the home ownership dream.