What’s the difference between rent to own and a loan?

Rent to own is a program where you pay monthly rent to the owner of the home, but also get the option to purchase the home in the future. A loan (financing) is a way to purchase the home now, and spread the cost of the home over time. This is done with the help of a lender who will pay for the house up front and then charge you interest on that amount while you’re repaying the loan. With rent to own, you usually pay an individual/owner. With a loan, you are usually paying a lender directly.