{"id":10877,"date":"2022-10-02T13:15:52","date_gmt":"2022-10-02T13:15:52","guid":{"rendered":"https:\/\/www.projectsmallhouse.com\/blog\/?p=10877"},"modified":"2023-05-28T13:32:21","modified_gmt":"2023-05-28T13:32:21","slug":"why-not-rent-to-own","status":"publish","type":"post","link":"https:\/\/www.projectsmallhouse.com\/blog\/2022\/10\/why-not-rent-to-own\/","title":{"rendered":"Why not Rent to Own?"},"content":{"rendered":"

There are a lot of dangers to Rent to Own. Is there a safe way to rent to own? What are some other options?<\/p>\n

\"\"
This house is supposed to be in Maine, Pennsylvania and Florida.<\/figcaption><\/figure>\n

Scams<\/h2>\n

All of the ads I have seen lately for Rent to Own are scams. It is not very hard to tell that they are scams. If you are on Facebook, just click on or search the name of the person who has listed the house. If that exact same house is supposedly in more than one location, it\u2019s a scam.<\/p>\n

You could also search the words in the ad on Google in quotes and find the exact same ad listed on Craigslist and other places. Sometimes they have photos of different houses, but usually it is the exact same house each time.<\/p>\n

\"\"
Only $650 a month for a 3 bedroom, 2 bath newly renovated home?
Too good to be true!<\/figcaption><\/figure>\n

Another red flag is the price. If it looks too good to be true\u2026<\/p>\n

Why? What\u2019s the Scam?<\/h2>\n

Sometimes the ad just sends you to a page for more information that is full of ads. They get paid per click or view by the advertisers on that page.<\/p>\n

Sometimes scammers want you to fill out an application, revealing information that can be sold or would allow them to steal your identity.<\/p>\n

Sometimes the scammers go so far as to get you to give them money. They want you to send first, last and a deposit for a house that doesn\u2019t exist or that does exist, but isn\u2019t theirs.<\/p>\n

What If the Seller Really Owns the House?<\/h2>\n

Sometimes the seller really isn\u2019t a scammer, but they don\u2019t actually own the house. As long as there is still a mortgage on the house, the house can still be foreclosed on. You might be making Rent\/Mortgage payments, but if the person doesn\u2019t pay the mortgage, you can lose your home.<\/p>\n

As long as the home is still in someone else\u2019s name, they can get a mortgage, second mortgage\u2026 Use the house as surety for a bail bond, have a lien attached to pay a debt or a court judgment. Unpaid taxes, HOA (homeowners association) fees, county or city fees… there are a lot of ways debt can be attached to a property.<\/p>\n

If a carpenter, plumber or even a wallpaper hanger, anyone who provides home improvement, isn\u2019t paid, they can file a claim or lien on the property.<\/p>\n

That is one reason a title search is done when you buy a property. It discovers any claims or liens on the property. The person selling the property may not even be aware of an old debt that can give someone else a claim on the property.<\/p>\n

I have been told that not all Rent-to-Own are scams. But they are certainly not your best option.<\/p>\n

If you love a house you are already renting, perhaps you can work something out with your landlord, but be VERY cautious. Even good, well meaning people can unintentionally sell you a house that you end up not actually owning.<\/p>\n

Better Options than Rent to Own<\/h2>\n

Rent With Option to Buy<\/h3>\n

Rent With Option to Buy is a contract that sets a selling price for the house you are renting. Sometimes it is part of your lease, sometimes it is a different contract. It works just like any other legal offer to buy or sell. Read the contract.<\/p>\n

Seller Holding Mortgage<\/h3>\n

If the seller owns the house outright or you can afford a large enough down payment to pay off what is remaining on the mortgage, the seller can act as the lender. The seller would retain the same rights over the property as a bank who loans you the money to buy a house. But the seller could not continue to use the house as an asset. The seller can no longer take out a loan using the house as security.<\/p>\n

Why would a seller hold the mortgage?<\/h3>\n

Why would a seller offer owner financing?<\/p>\n

The seller may earn more interest from the mortgage than if they put the money in the bank.<\/p>\n

The house can be sold As Is. A bank usually won\u2019t offer a mortgage if the house is not in good repair.<\/p>\n

Bank financing can sometimes take a long time. The person selling the home might want money faster.<\/p>\n

Often a seller includes a balloon payment. A balloon payment is a large single payment at the end of the loan term to pay whatever remains on the loan. That means you have a certain amount of time to pay off the rest of the money you owe for the house. You can pay off the loan by getting a conventional mortgage loan or if you reasonably expect enough money in the future.<\/p>\n

Don\u2019t expect to be able to save up enough money to make a balloon payment. Take the time you have to improve your credit score and make any needed repairs to the house so that you can get a mortgage on it with a good interest rate.<\/p>\n

Rent to Own is a real case of Buyer Beware!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

There are a lot of dangers to Rent to Own. Is there a safe way to rent to own? What are some other options? Scams All of the ads I have seen lately for Rent to Own are scams. It is not very hard to …<\/a><\/p>\n","protected":false},"author":1,"featured_media":10887,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[78],"class_list":["post-10877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research","tag-mortgage"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2022\/10\/featured-rent-to-own-b.jpg?fit=810%2C431&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":11420,"url":"https:\/\/www.projectsmallhouse.com\/blog\/2023\/05\/how-can-i-get-a-loan-to-buy-a-manufactured-home-part-2-va-loans-freddie-mac-or-fannie-mae-and-other-options\/","url_meta":{"origin":10877,"position":0},"title":"How can I get a loan to buy a manufactured home? Part 2: Owner Financing, VA Loans, Freddie Mac or Fannie Mae","author":"Carla","date":"May 27, 2023","format":false,"excerpt":"If you are buying a manufactured home, your financing options are limited. Not every lender wants to extend credit to buy a trailer or mobile home. The same thing applies to any other non-conventional home. If you are working with a real estate agent, they can help. If you found\u2026","rel":"","context":"In "Research"","block_context":{"text":"Research","link":"https:\/\/www.projectsmallhouse.com\/blog\/category\/research\/"},"img":{"alt_text":"A manufactured house under construction in Grass Valley, California. Photo by Jim Heaphy Talk by Cullen328","src":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2023\/05\/featured-manufactured_home-c.jpg?fit=810%2C431&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2023\/05\/featured-manufactured_home-c.jpg?fit=810%2C431&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2023\/05\/featured-manufactured_home-c.jpg?fit=810%2C431&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2023\/05\/featured-manufactured_home-c.jpg?fit=810%2C431&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13140,"url":"https:\/\/www.projectsmallhouse.com\/blog\/2024\/01\/what-does-a-round-house-look-like-inside\/","url_meta":{"origin":10877,"position":1},"title":"What Does a Round House Look Like Inside?","author":"Carla","date":"January 6, 2024","format":false,"excerpt":"When we were deciding what to build, my husband really wanted a round house. Deltec Homes is near us, so we see a lot of round homes. My dad built \"rondettes\" at Connestee Falls near Brevard, NC back in the '70s. I couldn't even imagine living in a round house.\u2026","rel":"","context":"In "House Plans"","block_context":{"text":"House Plans","link":"https:\/\/www.projectsmallhouse.com\/blog\/category\/house-plans\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2024\/01\/featured-round_house.jpg?fit=810%2C431&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2024\/01\/featured-round_house.jpg?fit=810%2C431&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2024\/01\/featured-round_house.jpg?fit=810%2C431&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2024\/01\/featured-round_house.jpg?fit=810%2C431&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":10615,"url":"https:\/\/www.projectsmallhouse.com\/blog\/2022\/06\/finish-yourself-24x40-cabin-shells-for-under-25000\/","url_meta":{"origin":10877,"position":2},"title":"Finish Yourself 24×40 Cabin Shells for under $25,000","author":"Carla","date":"June 9, 2022","format":false,"excerpt":"Since I saw the first double-wide cabin shell, I found some other versions and variations. They can be ordered with log cabin siding, with MDF, board and batten siding or vinyl siding. They are available completely unfinished inside. In some areas you can order them partially or even completely finished.\u2026","rel":"","context":"In "Log Cabins"","block_context":{"text":"Log Cabins","link":"https:\/\/www.projectsmallhouse.com\/blog\/category\/log-cabin\/"},"img":{"alt_text":"finish-yourself-24x40-cabin-shells-for-under-25000","src":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2022\/06\/modular_cabin-vinyl.jpg?fit=810%2C431&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2022\/06\/modular_cabin-vinyl.jpg?fit=810%2C431&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2022\/06\/modular_cabin-vinyl.jpg?fit=810%2C431&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2022\/06\/modular_cabin-vinyl.jpg?fit=810%2C431&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4588,"url":"https:\/\/www.projectsmallhouse.com\/blog\/2018\/09\/see-inside-the-tardis-tiny-house\/","url_meta":{"origin":10877,"position":3},"title":"See Inside the Tardis Tiny House","author":"Carla","date":"September 15, 2018","format":false,"excerpt":"The Tardis Tiny House just showed up on Facebook Marketplace. Now it says Bohemian Dream instead of Police Public Call Box. But, it is definitely the same Tiny House. Perhaps some breakdown in the Chameleon Circuit. Here is the ad. Marketplace Property For Sale Tiny House East Flat Rock, NC\u2026","rel":"","context":"In "Tiny Houses"","block_context":{"text":"Tiny Houses","link":"https:\/\/www.projectsmallhouse.com\/blog\/category\/tiny-houses\/"},"img":{"alt_text":"See Inside the Tardis Tiny House \u2013 Project Small House","src":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2018\/09\/featured_image-see-inside-the-tardis-tiny-house.jpg?fit=810%2C431&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2018\/09\/featured_image-see-inside-the-tardis-tiny-house.jpg?fit=810%2C431&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2018\/09\/featured_image-see-inside-the-tardis-tiny-house.jpg?fit=810%2C431&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2018\/09\/featured_image-see-inside-the-tardis-tiny-house.jpg?fit=810%2C431&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6086,"url":"https:\/\/www.projectsmallhouse.com\/blog\/2019\/04\/getting-the-log-cabin-ready-to-be-a-vacation-rental-the-photographer\/","url_meta":{"origin":10877,"position":4},"title":"Getting the Log Cabin Ready to be a Vacation Rental – The Photographer","author":"Carla","date":"April 5, 2019","format":false,"excerpt":"We have gotten moved into the new house and, at least for now, we are going to rent out the log cabin as a vacation rental. So, if you want to, you can stay in our cabin. When Cliff and I first got married, we lived in his house and\u2026","rel":"","context":"In "Log Cabins"","block_context":{"text":"Log Cabins","link":"https:\/\/www.projectsmallhouse.com\/blog\/category\/log-cabin\/"},"img":{"alt_text":"Getting the Cabin Ready to be a Vacation Rental - Photographer","src":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2019\/04\/featured_image-photographer.jpg?fit=810%2C431&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2019\/04\/featured_image-photographer.jpg?fit=810%2C431&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2019\/04\/featured_image-photographer.jpg?fit=810%2C431&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2019\/04\/featured_image-photographer.jpg?fit=810%2C431&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":15473,"url":"https:\/\/www.projectsmallhouse.com\/blog\/2025\/02\/6-tiny-houses-in-mills-river-from-only-70000\/","url_meta":{"origin":10877,"position":5},"title":"6 Tiny Houses in Mills River from only $70,000","author":"Carla","date":"February 12, 2025","format":false,"excerpt":"We went to the open house when they first launched Acony Bell Tiny Home Community. Since then the development has grown and matured into a real neighborhood with vacation homes and year-round residents. \u00a0It is unusual to find one of the best locations available to rent, but right now there\u2026","rel":"","context":"In "Tiny Houses"","block_context":{"text":"Tiny Houses","link":"https:\/\/www.projectsmallhouse.com\/blog\/category\/tiny-houses\/"},"img":{"alt_text":"6 Tiny Houses in Mills River","src":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2025\/02\/6-Tiny-Houses-in-Mills-River.jpg?fit=998%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2025\/02\/6-Tiny-Houses-in-Mills-River.jpg?fit=998%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2025\/02\/6-Tiny-Houses-in-Mills-River.jpg?fit=998%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.projectsmallhouse.com\/blog\/wp-content\/uploads\/2025\/02\/6-Tiny-Houses-in-Mills-River.jpg?fit=998%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/posts\/10877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/comments?post=10877"}],"version-history":[{"count":7,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/posts\/10877\/revisions"}],"predecessor-version":[{"id":10889,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/posts\/10877\/revisions\/10889"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/media\/10887"}],"wp:attachment":[{"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/media?parent=10877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/categories?post=10877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.projectsmallhouse.com\/blog\/wp-json\/wp\/v2\/tags?post=10877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}