Philly Realtor Explains Rent to Own

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💬 Tom Fior | 215-900-7527

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Thinking about rent to own in Philadelphia because buying feels out of reach right now? You’re not alone. Many first time home buyers in Philly and Delaware County search for rent to own as a way to “get in sooner” without traditional financing, but the hard truth is this. Rent to own is not a shortcut. In most cases, it doesn’t really exist the way people think it does.

This video breaks down what rent to own actually means in real life and why most Philadelphia Realtors don’t recommend it as a strategy. There are only two versions of rent to own that ever show up in practice, and neither works the way the ads make it sound.

The first option is true owner financing. That means the seller acts as the bank and carries the loan for you. In today’s Philadelphia real estate market, this is extremely rare. Most sellers need the proceeds from their sale to buy another home, pay off a mortgage, or move on financially. A seller financing your home for 30 years is almost never realistic.

The second option is a balloon style agreement. This is what most rent to own deals actually are. You rent the home with an agreement to purchase it later, usually within two to five years. At the end of that term, you still need to qualify for a traditional mortgage. If prices go up, rates change, or lending guidelines tighten, you could be right back where you started, except now you’ve lost time and leverage.

For first time home buyers in Philadelphia and Delco, this matters because rent to own delays clarity instead of creating it. It doesn’t replace mortgage planning. It doesn’t lock in long term affordability. And it often creates more uncertainty, not less.

If you’re trying to buy a home in Philadelphia, there are smarter ways to prepare that actually move you forward. Things like understanding real price ranges, planning for closing costs, exploring first time buyer programs in Pennsylvania, and knowing what steps truly put you in a position to buy with confidence.

I’m Tom Fior, a local Philadelphia and Delaware County Realtor helping first time home buyers, sellers, and relocation clients move with confidence every day.