What exactly is rent to own?

Rent to own is a program designed for potential buyers that can’t quite qualify for a loan, but would really like a house to call their own. Most companies offer similar terms on rent to own, but some are better than others. It is important for you to have a good understanding of rent to own programs before you make a final decision. Here is a basic breakdown of what you should expect when looking for a rent to own property in Grand Rapids:

1. The real estate will have a purchase price, just like any house you would purchase.
2. You will need a down payment which goes towards the purchase price. This down payment is rarely refundable if you move out before gaining actual ownership of the property.
3. You will have a monthly payment. In some cases, a portion of this monthly payment goes towards the purchase of the home. In some cases it will not. Be sure you understand the terms before signing documents.
4. You will usually have between 12 and 36 months to qualify for financing from a lender. Be sure to work with a mortgage company so you know what to do to get your credit where it needs to be to qualify for bank financing.

That is the basic breakdown of a rent to own real estate transaction. There are many companies that offer rent to own locally. With the lending guidelines tightening up lately, even the companies offering rent to own properties are having trouble keeping up with the demand.
You can find many investment companies in Grand Rapids that offer rent to own properties, as well as property management companies. Our company, Razmus Ventures Inc. occasionally has rent to own real estate available also. If we have any currently, they will be seen at the bottom of this page.

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