Buyer FAQ: What is a rent-to-own property?
Great question! Here's the deal:
A rent-to-own property is an agreement between the buyer and seller that allows the buyer to purchase a home after a few years of renting. Typically, the buyer pays a slightly higher rent. In exchange, the seller allows these extra funds to act as a down payment at the end of the agreement. Should the buyer choose not to purchase, the extra payments are forfeited.
While a rent-to-own property allows you to "test drive" homeownership, you stand to lose money if you choose not to buy in the end. You also run the risk of not qualifying for a home loan when the time comes.
If you’d like to talk more about buying this spring, I’d love to chat! Send me a DM. I’d love to share all the many roads to homeownership. I’m confident there’s one that’s right for you!
Cindy Grenier, 204-330-2567