--- title: "How does fractional ownership differ from… — Ownify" description: "A summary of the key features of rent to own and fractional ownership and the differences between the two first time homebuyer options" lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "@id": "https://ownify.com/#organization", "name": "Ownify", "alternateName": "Ownify Homeownership", "url": "https://ownify.com/", "logo": "https://ownify.com/favicon.png", "description": "Ownify is a fractional homeownership platform that helps first-time homebuyers buy a real home with as little as 2% down by partnering with long-term capital investors. 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With your consent, we may also use non-essential cookies to improve user experience and analyze website traffic. By clicking “Accept,” you agree to our website's cookie use as described in our Cookie Policy . You can change your cookie settings at any time by clicking “Preferences .” PreferencesDeclineAccept [![Ownify](/assets/ownify-logo-color-B9tRH5I9.png)](/) [Homebuyers](/homebuyers) [Investors](/investors) [Agents](/agents) [Markets](/markets) [Research](/research/ownify-university) [Blog](/blog) [About](/about) [Sign in](https://app.ownify.com/auth/magic/request)[Get started](https://app.ownify.com/applications/new) By Ben Herold • March 1, 2023 # How does fractional ownership differ from rent-to-own? A summary of the key features of rent to own and fractional ownership and the differences between the two first time homebuyer options With so many different options available for first-time homebuyers, it can be difficult to decide which is the best fit for your needs and budget. Two popular options are rent-to-own and fractional ownership, but what’s the difference between them? Let’s explore their key differences in order to help you make an informed decision. Rent-to-own is an option that some first time homebuyers may explore when looking into homeownership. This is a type of lease agreement that allows tenants to rent a property for an agreed upon period of time with the option to purchase it outright before the end of the lease term. During the term of the lease, the tenant pays both rent and an additional fee which goes toward their eventual purchase price. This future purchase price is fixed and determined at the onset of the agreement. Fractional ownership, also known as shared ownership or shared equity, is an arrangement in which a buyer partners with an equity provider to build equity in their home over time, while living in it. Under this type of agreement, each party owns a portion (or “fraction”) of the property that corresponds to their share of the purchase price. It allows buyers to maximize their purchasing power while still retaining ownership over a portion of the property, without having to pay the full cost upfront. This option is ideal for those who desire direct ownership in their home, but don’t have enough money to buy an entire property outright. Fractional ownership and rent-to-own are both potential options for first time homebuyers who may not have enough money saved up front or who want more flexibility in their buying process. However, each option has its own unique pros and cons that should be taken into consideration when making your decision. No matter which you choose – fractional ownership or rent-to-own – make sure you weigh all your options carefully before making your final decision so you can find an option that works best for you! To learn more about how Ownify’s fractional ownership works, visit www.Ownify.com. ©2023 Ownify, Inc. All rights reserved. Ben Herold is COO and Founder of Ownify, Inc. #### Related reading - [rent-to-own vs. Ownify](https://ownify.com/homebuyers/vs-rent-to-own) - [Ownify vs. a mortgage](https://ownify.com/homebuyers/vs-mortgage) - [how bricks work](https://ownify.com/blog/what-are-bricks) - [in the NC Triangle specifically](https://ownify.com/blog/rent-to-own-in-the-nc-triangle-vs.-ownify-a-smarter-path-to-homeownership) ### Homebuyers - [How it works](/homebuyers/how-it-works) - [Are you eligible?](/homebuyers/eligibility) - [Build my plan](/myplan) - [Ownify vs. mortgage](/homebuyers/vs-mortgage) - [Ownify vs. rent-to-own](/how-rent-to-own-works) - [Detailed calculators](/homebuyers/detailed_calculators) - [Ownify Mortgage](/mortgage) ### Investors - [Why invest](/investors) - [Investor FAQ](/investors/faq) - [North Carolina Home Fund](/investors/north-carolina) - [Colorado Home Fund](/investors/colorado-home-fund) - [Become a partner](/investment-partner) ### Agents - [How it works](/agents/how-it-works) - [Agent benefits](/agents/benefits) - [Get accredited](/agents/accreditation) ### Markets - [Colorado](/markets/colorado) - [North Carolina](/markets/north-carolina) - [Tennessee](/markets/tennessee) - [California](/markets/california) - [All markets](/markets) ### Company - [About us](/about) - [Our impact](/research/our-impact) - [Ownify University](/research/ownify-university) - [Reviews](/reviews) - [Blog](/blog) - [Ownify Tools & Tech](/tech) [![Ownify](/assets/ownify-logo-reversed-CShwpfYm.png)](/) [Terms](/legal/terms)[Privacy](/legal/privacy)[Contact](/contact)[Consent Preferences](#)[Do Not Sell or Share My Personal Information](https://app.termly.io/notify/50967156-fd3e-48cb-95dc-98f33b36600a)[Limit the Use Of My Sensitive Personal Information](https://app.termly.io/notify/50967156-fd3e-48cb-95dc-98f33b36600a) © 2026 Ownify, Inc. All rights reserved. Equal Housing Opportunity. Fractional ownership investments are provided by Ownify, Inc., 548 Market Street #25841, San Francisco, CA 94104. Real Estate Brokerage services may be provided by Ownify Real Estate LLC, NCREC C36616. Mortgage broker and loan processing services are offered through Real-Finity Mortgage, LLC, dba Realfinity. NMLS #2445766 and #2723220. Real-Finity Mortgage, LLC is a licensed mortgage brokerage and maintains its corporate headquarters at 929 Alton Road Suite 500, Miami Beach, FL, 33139.