There are several that are considering their options within the real estate market because of the current economic conditions.  If you are trying to find the best deal for your finances and for the flexibility that you need, then you may also be looking into rent to own homes, also known as owner financing.  This particular option is one that is continuing to increase among many as an alternative way to get into a home without having to make the same initial investments on property.  However, others are avoiding this option because of the surrounding myths that are a part of seller financing.  Understanding the truth about this particular alternative can help you to decide whether it is the best way to get into home ownership. 

1. Owner financing is related to a desperate sale.  Many are finding that foreclosures, short sales and the need to sell quickly is the main concept used in real estate today.  For those that have decided owner financing is the best option is also the belief that they are trying to get out of their home quickly.  However, most sellers use this option because it is a better investment and offers flexibility to those that are interested in buying. 
2. There is a high risk in owner financing.  There are several that avoid getting into seller financing because of the belief that the money will be lost and that the investment will turn into a lost deal.  However, each of the transactions that are made is intertwined directly with a mortgage company and are under contract with the seller.  This makes owner financing legitimate and safe to be a part of. 
3. Owner financing is too creative.  Real estate agents and mortgage companies are considered a safe and secure investment.  Many who look outside of this have created the belief hat alternative financing doesn’t hold the same level of security.  However, most of the seller financing options is combined with contractual agreements and direct financing that not only involves a seller, but also other institutions that guarantee security. 
4. There isn’t money involved in rent to own homes.  There are many that believe that rent to own homes are a scam and don’t provide the correct investments for those that are looking for a longer term agreement.  More importantly, there are many that believe that either the seller or the buyer won’t make the right amount of commission or profit when they decide to move into owner financing.  If you look closely off the agreements made with these contracts; however, you will find that the profit level is higher than most and can provide more opportunities for financing. 
5. There are too many scams involved in owner financing.  There are several situations that have led to sellers or buyers having a contractual agreement that doesn’t work right or that leads to a loss of money.  If you are not certain about this, then you will want to make sure that you understand the contracts that are a part of the owner finance agreement.  With the right contract and the correct parties involved, you can avoid any of the scams that are a part of rent to own homes.