If you’re looking for rent to own homes in Greater Lansing, this is for you!
Rent to own homes, do they exist?
In short, rent to own homes are out there. Finding one that suites your needs may take time. In the Greater Lansing area, homes that with a “rent to own option” could listed a few different ways.
- Land Contract
- Lease Option To Buy
- Rent To Own
Although these listings are similar, the financing terms may be different for each individual property. The one common item in each situation is a non refundable down payment. A down payment ensures the buyer has intention to purchase the property in the near future. It really depends on the terms of the contract what percentage of the down payment is applied towards the final purchase price.
Current Rent To Own Home in Dewitt!
Rent-to-Own (Lease Option) has a $5,000 option enrollment fee. Buyer to pay a base rent of $900 plus an additional $300 monthly fee towards the purchase of the house. 25% of the monthly fee is matched as credit by the seller. Average duration of contract is 5 years. Buyer either pays seller cash or obtains bank financing to purchase the house at anytime during the contract. Buyer will be enrolled in credit repair program if necessary to ensure bank financing is viable. Buyer candidates subject to employment/income verification, credit check, and criminal background check.
Rent To Own Terms
Many times in the Greater Lansing area rent to homes have terms similar to the “normal” rental agreement offered at apartment complexes. In general you give a security deposit and/or the first and last months rent. Nearly 80% of the time renters receive none of their up front security deposit at the end of the lease and zero for each monthly payment. With a rent to own home, a percentage of the deposit is actually returned to you as a credit at the end of term when you make the final purchase of the home. Your contract terms will also include a portion of the monthly payment going towards the final purchase price.
Benefits of Rent To Own
Rent to own is not for everyone. However, if you need more time to repair your credit or simply can’t get a loan at this time rent to own is a great option. The money you are spending each month for rent is actually going towards paying down your final purchase price and not into a management companies bank account. When you buy a home with this option, you become a home owner.
For more great deals, check out our Lansing, MI foreclosure listings.