Skip to main content
Real estate agent handing house keys to a smiling couple in front of a Philadelphia rowhome

Rent-to-Own Programs

Rent now, buy later. Build equity through rent credits while you improve your financial readiness. Flexible path to homeownership in Philadelphia and surrounding counties.

How Rent-to-Own Works

Rent-to-own agreements combine a standard lease with a future purchase option.

  1. Pay an option fee: Typically 1-5% of the purchase price, securing your right to buy later. This fee is usually applied toward the purchase price.
  2. Sign a lease with purchase option: Each month, a portion of your rent goes toward the future down payment as rent credits.
  3. Build rent credits: Accumulate equity while you rent, making homeownership more accessible.
  4. Purchase the home: At lease end (typically 1-3 years), exercise your option to buy at the pre-agreed price.

Benefits of Rent-to-Own

  • Lock in today's purchase price and benefit if values rise
  • Test the neighborhood before committing to purchase
  • Use the lease period to improve your credit score
  • Build equity through monthly rent credits
  • Lower upfront cash requirement than a traditional down payment

Is Rent-to-Own Right for You?

Rent-to-own is ideal if you need time to save, improve your credit, or want to test a neighborhood. It is popular in Philadelphia neighborhoods like Fishtown, Manayunk, and Fairmount, as well as suburban communities.

FAQ

Common Questions About Rent-to-Own

How does rent-to-own work?

You pay an option fee, part of your rent becomes rent credits toward the purchase, and you can buy at a pre-agreed price after the lease term.

Ask Smarty a question
What are the benefits of rent-to-own?

You lock in prices, test the neighborhood, improve your credit during the lease, build equity through rent credits, and need less cash upfront.

Ask Smarty a question
Is rent-to-own right for me?

It fits buyers who need time to save for a larger down payment, rebuild credit, or test a neighborhood before committing.

Ask Smarty a question
What happens if I decide not to buy at the end?

You may forfeit the option fee and rent credits, with the terms spelled out in your lease-purchase agreement, which John can explain first.

Ask Smarty a question
John Smart

Answered by John Smart

AI-Certified Agent\u2122 with eXp Realty | PA License RS348332

Serving Philadelphia, Montgomery, Bucks, Chester, Delaware and Berks Counties

Interested in Rent-to-Own?

John Smart can explain the options, connect you with lenders who understand rent-to-own financing, and help you find the right property.