Rent to own is when a buyers sign this kind of contract, they agree to rent the home for a set amount of time before exercising an option to purchase the property when or before the lease expires.

While traditionally to qualify for a mortgage, potential buyers need to have a good credit score and cash for a down payment. Without these, purchasing a home may not be an option.

In a rent to own agreement, potential buyers get to move into a house right away, with several years to work on improving their credit score and/or saving for a down payment.