Difference Between Rent To Own Homes and Owner Financing

It is very important to know the difference between owner financing and rent to own.

In a rent to own purchase, which can also be called a lease option, lease purchase, lease to own, rent to buy, or the like, you as the buyer, or tenant, have the option to purchase the home at any time during the rental period.

This means you have the legal right to purchase the home for a fixed period of time, but you’re not obligated to purchase if you decide not to, or if you’re unable to qualify for a mortgage.

Now let's take a look at owner financing.

This can also be called a land contract, seller financing, contract for deed or the like.