RENT TO OWN YOUR DREAM HOME

Rent-to-own (also called a lease-option or lease-purchase) allows you to rent a home now and secure the opportunity to buy it later at an agreed-upon price. You live in the home during the rental period while preparing for mortgage approval.

A traditional rental does not give you the opportunity to buy the home later.
With rent-to-own, you secure the right — not the obligation — to purchase the home after a set time period, usually at a locked-in price.

In Texas the most will be 36 monts but you are able to purchase anytime before then. During this time, you work toward qualifying for a mortgage.  Each year the price of the home will increase 5-10% to incentivice tenants to purchase as soon as possible.

The amount you need for a down payment depends on your credit score.  You may be able to put 5% down with a higher score but most will be 10% down and most if not all can be applied to when tenant purchases the home.

Not at the beginning but you will need to work towards credit worthiness to execute the purchase part of the agreement.
The intention is to give you time to improve credit so you're ready to buy at the end of the lease term.

This program is perfect for self employed and irregular income earners since sometimes they find it difficult to qualify.

This allows the tenant buyer to choose their home and live it while working towards qualifying for future purchase.

Your purchase price is typically locked in upfront, which means if the market rises, you may benefit from built-in equity when you're ready to buy.  Normally price will go up 5% for year one, 10% year two and 15% year three to incentivice the tenant buyer to purchase as soon as possible.

A one year lease is usually required.

Since tenant buyer will be the owner, it will require the tenant to manage more responsibilities. All maintenance expectations are clearly outlined before signing.

Yes — and many renters prefer this option.
Certain builders in the Houston area offer flexible pathways to purchase or allow rent-to-own companies to buy brand-new homes that qualify under their price and structure guidelines.

Typical mortgage guidelines include:

620+ credit score (580 for FHA or VA loans)
2-year work history
Down payment: 3.5% FHA, 5% Conventional, 0% for VA (if eligible)
During the lease term, many buyers work with a lender to meet or improve these requirements.