In the real estate market, different financing options are available to homebuyers with bank financing being the most popular one, even if it is quite challenging to secure it. An alternative has been presented in the form of in-house or seller financing commonly used in rent to own property transactions.
Although the coined term is quite popular among homebuyers, and although rent to own properties continue to be readily accessible to interested consumers, the HLURB has recently moved to legally prohibit the use of the phrase “rent to own” as it is said to be attractive yet misleading. What is not misleading about these types of properties is that they offer homebuyers with an alternative financing solution that will get them closer to owning their dream homes. Because it is an arrangement between the buyers and the sellers, banking institutions aside, it extends the home ownership opportunity to those who are not in possession of the credit histories or business documents banks require.