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Millions are using risky ways to try and buy an affordable home : NPR

Alternative financing arrangements can be the only option for low-income Americans. But they lack the same protections as a mortgage, and many end up paying for years without ever gaining ownership.

Millions of Americans are resorting to risky ways to buy an affordable home

Alternative financing arrangements can be the only option for low-income Americans. But they lack the same protections as a mortgage, and many end up paying for years without ever gaining ownership.

Be Cautious: Contract for Deed or Rent to Own

Contract for Deed: The Promise of Homeownership that Often Leaves Midwest Buyers out in the Cold

The contract for deed or rent-to-own option is marketed as a way for people who can’t get a conventional mortgage to realize the dream of owning a home. But more often than not, buyers do not end up as homeowners. And, most Midwestern states provide little, if any, consumer protection to prevent abuse.

Contract for deed: The promise of homeownership that often leaves Midwest buyers out in the cold

The contract for deed option is marketed as a way for people who can’t get a conventional mortgage to realize the dream of owning a home. But more often than not, buyers do not end up as homeowners. And, most Midwestern states provide little, if any, consumer protection to prevent abuse.

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