An Alternative Mortgage?

Some people out there aren't letting this difficult market rob them of a chance to get the home they want, even if it means bypassing the traditional mortgage system and leaving the banks out of the picture.

A typical 'Rent-to-Own' scenario: A buyer provides a down payment and moves in, and then pays rent for an already agreed-upon period of time, typically 2 to 4 years. Once the rental period is over, the buyer buys the house with the money that the buyer saved, theoretically, during the rental period.

Although for some the 'Rent-to-Own' is a happy alternative to the traditional method of selling/buying a house, it isn't for everyone. You're still signing a contract and there are usually agencies involved in the transactions. Sellers want to make sure that you will indeed be buying the house once the rental period is up. There's a lot involved but the advantage for the buyer is that they actually get to live in their dream home while saving the money to buy it.

It's also a good deal for the seller. Instead of losing money by selling during this time of plummeting home prices they are able to sell to buyers that just need a little time in order to save. By collecting rent in the meantime they are simply pulling in extra funds that they may not have made otherwise. Not a bad deal.