Rent to own homes use an agreement that usually only specifies how much money you will pay in rent each month and the amount you agree to purchase the home for within your option period.
It is completely up to you as the tenant/buyer to get qualified for a home loan and come up with the funds to close on the home during the option period.
The amount of money you will be required to come up with to purchase the home varies GREATLY based on the state you live in and the deal you negotiate with the homeowner.
When purchasing a home there is a down payment and closing costs. The same is true for a rent to own home. But, with a rent to own you get to use the option fee and rent credits you have built up to reduce the amount you pay out of pocket.
You still need to determine what type of loan you AND your home can qualify for in your area.
Currently, an FHA loan requires ONLY a 3.5% down payment plus closing costs. But there is a maximum loan amount available per state.
You can check out FHA loan details for your state by clicking here