I'm tired of renting, but scared of depleting my savings (24k) on a down payment. I have very good/excellent credit. I'm seeing ads for rent-to-own contracts everywhere. How does that work? I can't seem to find a definitive answer. It seems too good to be true…I get to own a home, but I don't have to make a big down payment? What's the catch? Should I just keep saving until I feel comfortable with a mortgage, or is rent-to-own a good option?
Added (1). If I see a home I like that is being offered on a rent to own deal, can I apply for a traditional mortgage for that particular home? Or can it only be bought with a rent to own deal?
Read more: Can someone explain how rent-to-own home ownership works?
