Over the past few years, the rent-to-buy home deals have enjoyed a steady rise in popularity due to the growing property prices and the ever tougher mortgage requirements. They are designed to help you purchase a house after a period of renting. There are no special requirements to enter into such a deal and the terms and conditions are quite flexible. Find out when this strategy is an effective option.Bad CreditIf you currently have bad credit, you will find it extremely difficult to secure a home loan. Even if you get approved, you can expect to pay a much higher mortgage rate. With a rent-to-buy home deal, you can have your dream home right away. You agree to a rental term after which you will have the opportunity to purchase the house at the initially set price, which cannot be changed.A chunk of the rent will go towards building equity in the property. That way, you will have several years, typically between three and five, to repair your credit and to apply for a mortgage. Since your contributions will be discounted from the price, you will have even higher chances of getting a loan due to its smaller size.Foreclosure and BankruptcyIf you have gone through foreclosure or bankruptcy, you will have to wait for a year or two before you can apply for a mortgage and purchase a house again. You can use this time to build equity in the property that you want to purchase via a rent-to-buy deal. That way, you will have better chances of approval when you apply for a home loan eventually.Insufficient SavingsAt present, most mortgage lenders require house buyers to place a deposit equal to some 20% of the value of the property. This is quite a lot of money especially for young families with a lot of expenses. If you do not have sufficient savings, but you have saved a considerable amount of money, you can go for a rent-to-own deal. This will enable you to secure a home loan at a later date. Just keep in mind that the deposit which you make as part of such a deal cannot be refunded so you will have to make serious commitment.No Stable EmploymentMost lenders will reject your mortgage applications if you have changed jobs frequently over the past two years. If you plan to settle in and to stay on your current job for a longer period of time, you can readily use the rent-to-own option. When the time for making a mortgage application comes, you will have the employment stability required by the lender.You can have your dream home with a rent-to-buy deal.