Is it a good idea to participate in a rent to own program?

June 3, 2016
I am 27 and I am going to start working right now as a Medical Resident. My gross salary is going to be $46,398 in the first year. The house that I'm interested in is $855. My other debt is a student loan which I will pay $248.

Advisor answers

The immediate answer is a profound NO! Rent with an option to purchase can be a complicated venture. For example, the house in which you like rents for $855 per month but the actual market rent for a similar property may be as low as $655 per month. Your agreement may state that $200 of your monthly rent will be credited back to you. At the end of a one-year term, you would've accumulated $2400 which can be used toward your downpayment. However, there will be strict stipulations in the contract. It may state that if you're delinq...