Renting to own homes are a great alternative for those who are unable to qualify for mortgage financing. Many people in Michigan find that they can’t buy a home because they don’t have enough money saved up for a down payment or the credit score required by most lenders.
The Rent to Own Program allows you to rent a property with the option to purchase it after you’ve lived there for 18 months. You’ll make monthly payments toward your down payment and closing costs until you’re ready to buy your new home.
To help you decide if this is the right option for you, we’ve pulled together some information about renting to own homes in Michigan below.
What is a Rent to Own Home?
Rent to own homes are properties that you can rent with the option of purchasing them at a later date. This is often done when someone has bad credit, no money down or no access to traditional financing options. Rent to own homes are also known as lease options, rent with an option to purchase, lease option agreements and contract for deed. You’ll typically pay a higher monthly rent and have to make larger deposits, but you won’t be charged any extra fees. You’ll also need to submit more paperwork for the owner’s approval, but this can be done through a third-party company that specializes in rent to own homes. They’ll help you select the property and negotiate terms with the landlord.
How To Find Homes For Rent To Own in Michigan?
If you’re interested in renting to own a home, one of the first things you should do is talk with a real estate agent. They can help you find homes for rent to own in your area and give you an idea of what’s available. You can also search online for Michigan rent to own properties listings that say “rent-to-own” or “lease option” on them. Once you find a property that interests you, contact the owner. Ask if they’re willing to rent-to-own and how much down payment is required. If everything works out, you can then put in an offer through your real estate agent or directly with the seller.