If you dream of owning a house but cannot afford a down payment or high monthly mortgage, then rent-to-own is the perfect solution for you. Rent-to-own is an ideal housing situation for low- and middle-income renters in Texas. Through rent-to-own, you can achieve your dream of home ownership without having to meet the qualifications normally associated with home ownership.

What is rent-to-own?

Rent-to-own gives you the opportunity to buy your rented home at the end of your lease. To qualify, you just need to sign an agreement and pay a small fee. While renting, you will continue to make monthly rent payments to your landlord. However, the landlord will apply some of the rent to a mortgage payment.

In a rent-to-own agreement, the lease term may last up to two years or more. A longer-term lease gives the renter plenty of time to save up and make small payments on the house. Renters do not necessarily need to commit to purchasing the home. At the end of the lease term, they are often allowed to change their minds about buying.

What are some benefits of renting-to-own?

Renting-to-own provides several advantages for the renter. Instead of paying a large down payment, you only need to pay a small fee. Furthermore, you do not need to demonstrate a high income or perfect credit score to rent-to-own. These benefits lift the usual barrier to homeownership for low- or middle-income aspiring homeowners.

Can I use my Section 8 vouchers for rent-to-own?

In Texas, Section 8 housing beneficiaries can use their Section 8 vouchers to make payments on a rent-to-own home. The U.S. Department of Housing and Urban Development (HUD) allows participants in the Section 8 Homeownership Voucher Program to purchase a home using their government benefits. Thus, current Texas Section 8 beneficiaries can apply to participate in the rent-to-own program. Those who are not currently receiving Section 8 benefits can also apply. Many Texas rent-to-own participants also qualify for housing assistance, such as first-time homebuyer grants, that can make buying a house even easier.

What are benefits for Texas residents?

The State of Texas offers a wide array of benefits and services to the residents of Texas at home and abroad. These benefits include health care, housing assistance, unemployment assistance and a variety of programs for families to assist with food and health expense. Many individuals and families qualify for several of these programs. Complete the survey and download our guide to find helpful information on all of Texas Benefits along with details about eligibility and instructions for how to apply here.

Who is eligible for Texas benefits?

The State of Texas extends benefits to those who qualify. Families, individuals who have lost their job, persons with disabilities and elderly residents are usually those who will benefit the most from Texas’s social welfare programs. For a comprehensive list of the requirements for each of Texas’ programs please complete the survey and download our guide.