The old “Rent-to-own” and the newest version of “Rent-to-own” are both ways that people can buy a house even if they don’t have all the money to buy it right away.

With the older version, someone agrees to rent a house for a certain amount of time, but they also pay a little extra money each month that goes towards buying the house. After the agreed upon time is up, they can decide if they want to buy the house or not. If they do, all the extra money they paid while renting goes towards the cost of the house.

The new version is a little different. With the new version, their real estate agent will help them find a house from the ones that are listed for sale on the MLS. When they find the right house, they work with a Fintech lender to buy it. The Fintech lender pays for the large part of the house, and the person buying the house pays for the rest. Then, the renter makes monthly payments to the Fintech lender to pay off their part of the house. Over time, they can buy more and more of the house until they own it completely.

So, the old rent-to-own and the new version are ways to help people buy a house when they can’t afford to buy it all at once. The main difference is that with old rent-to-own, they rent the house first and pay extra to buy it later, while with with the new rent to own they work with a company to buy the house and pay it off over time.

Be sure to ask your real estate agent which version is right for you?