Leasing
Leasing is not quite the same as rent to own. It is more rent to buy.
The way a house lease usually works is you pay an up front option fee which gives you the right to purchase the house at time X for set price Y. Often some portion of the rent and/or some of the option fee are given back when you purchase the house as a down payment.
This can be advantageous if you do not have good credit. A better credit score usually means a lower interest rate from the bank (to a point). If you have bad credit, you can get a two year lease, live in your future house while you get your credit in order and save up a down-payment all at once.
It can be disadvantageous if you are unable to meet your obligations or get your credit in order; you can lose the option fee.
If property values fall you might not want to purchase at the option price, but the seller will probably negotiate as in you he has a buyer with no realtor fees and will probably recognize the market has fallen.
Some people with good credit will lease option if they are not certain if they will still be in the area. My sister leased her house out to a year to someone who was new to the area (FL) but loved the house and knew if he stayed in the area he would end up there.
