While the main option for purchasing a home is obtaining a mortgage, when you have low credit or no money saved for a down payment and closing costs you may want to look for a rent-to-own opportunity. There are pros and cons for each option, which means you need to research both and decide what the best choice is for you.

Rent To Own

When you enter into a rent to own program Tennessee with a landlord, you pay a monthly rent with an additional amount going towards a future down payment. You are not obligated to purchase the house at the end of the lease. Contracts can be written with different terms to meet the needs of you and the landlord. There are a variety of lengths, costs and future purchases to consider and place into the contract.

This choice works well if your credit isn’t high enough to secure a mortgage. It can also be a good choice if you don’t have money saved for a down payment. When the lease ends the landlord can decide to continue leasing the home to you, rent it to you at the current market price or put it on the market and sell it.


Purchasing a home can be easier if you have the money and credit score to secure a loan with a low-interest rate. Some realtors don’t recommend a rent-to-own situation. Instead, they suggest renting until you can qualify for a mortgage. When you know you want to buy a home in the near future, work on getting your credit scores as high as possible and save money for a down payment to make it as stress-free as possible when you start house hunting.

Talk to a real estate agent, loan officer or both to explore both options and see what path may be the best one to get you to homeownership.

Should You Rent To Own or Buy a House?

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