 TITLE: What Are the Pros and Cons for Rent-to-Own? CONTENT: What Are the Downsides of Rent-to-Own?\n--------------------------------------\nThere are some potential downsides when considering a rent-to-own agreement. For one, you may be on the hook for a nonrefundable upfront fee, although this is usually applied to your down payment when you eventually buy the home. Again, every contract is different, but 1% of the purchase price is a standard option fee.\nWhat's more, if part of your monthly rent is indeed applied to your down payment, your rent will likely be higher than average for your market—sometimes to the tune of 10% to 15%. Your contract may also specify that you're responsible for property maintenance while renting. This could be a costly detail if your roof springs a leak or your air conditioning gives out.\nWhen all is said and done, there's also no guarantee that you'll ultimately qualify for a mortgage at the end of the lease agreement. However, those who use their rental period to save, strengthen their credit and firm up their finances will be better positioned to qualify. Just keep in mind that if the owner defaults on their mortgage and the home is foreclosed on before you buy it, you could be forced to leave.\nAnother major downside is that you might sign a lease agreement that obligates you to buy the property at the end of the lease period no matter what. If you can't afford to buy the property, the legal requirement to buy it could land you in legal or financial hot water. Before you sign anything, carefully read it and make sure you understand it. If you have questions, consult an expert or attorney. END