This scenario is best if you are saving for a down payment and are working to build back your credit. You and the seller decide on a price and length of time for the contract. (Usually between 1 and 5 years). A down payment of 3%-5% of the price of the home is required upfront. The seller leaves their current mortgage on the home and a portion of your payment is put towards the seller’s mortgage. A monthly amount between $100-$300 goes towards a down payment fund. This fund builds over the life of the contract to add to the down payment. At the end of the term you find your own financing from a broker to pay the seller out and the mortgage qualification process begins. Rent-To-Own is ideal for those that would be able to qualify for a mortgage after the said length of the contract. During this contract period, it’s best to work on building back your credit and continuing to save for a down payment. We can get you in touch with a realtor to start the process!