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Rent-to-Own Gaining Favor Once Again

Rent-to-own options are becoming popular again after falling out of favor during the last couple of decades when mortgages were easy to get.

The advantages of rent-to-own to buyers include a way around poor credit, an opportunity to rebuild credit worthiness and a way to try out homeownership without making a costly commitment.

For sellers, it offers cash flow from properties that might otherwise just be sitting there.

In some parts of the country, like Florida, rent-to-own arrangements are fairly commonplace, but in other parts of the country developers are only beginning to experiment with this form of purchase.

In the Boston area, Economic Development Financing Corp. (EDFC) and Trinity Financial are two affordable-home developers that have introduced experimental rent-to-own programs. Eric Gedstad, spokesman for MassHousing, a state agency that finances housing construction, says his agency is supportive.

“As the lender, we are gratified that the developer has cash coming in. It makes sense for potential homeowners. The more time that goes by the better the opportunity for someone to repair his credit.”

Source: Boston Globe, Robert Preer

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Nia Knowles

Realtor, Community Advocate, Mother, Leader, Innovative Thinker, Idea Generator,

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2 thoughts on “Rent-to-Own Gaining Favor Once Again”

  • Alana

    September 5, 2008 at 3:58 pm

    I’ve seen one of homes that was available in the West End, as a foreclosure, scnatch up by an investor for cheap and is now being offered for Rent-to-Own 119k–advertise on Craigslist– without any renovation work being done on the home!

  • niaknowles

    September 5, 2008 at 5:11 pm

    I see the same- lucky investor! 🙂 He got a lot of good homes!

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