Finding the Right Rent-to-Own Lender

A rent-to-own lender can provide you with a viable way to purchase a home. However, you want to make sure that you are dealing with a good rent-to-own lender before getting involved. Here are a few things to look for in a rent-to-own lender.


You want to find a rent-to-own lender that has a high degree of transparency in business dealings. You do not want to associate yourself with a lender that seems to be hiding details of the transaction. Many rent-to-own lenders will not disclose all of the fees in advance and try to take advantage of you at every turn. When looking for a lender, you want to find someone that will spell out the entire process for you in advance. You want to see all of the fees that will be associated with this process in writing.

Lowest Options

Many times, you will be required to make some type of a down payment on the home before the process starts. When looking for a lender, you want to find someone that does not require a substantial down payment. Compare the different rent-to-own lenders and determine which one offers the lowest initial down payments. Typically, you should be required to pay only between 1 and 5 percent of the purchase price of the house as a down payment. If the seller is asking for more than this, do not hesitate to walk away from the deal. 

Good Selection

You should also look for a rent-to-own lender that has a good selection of houses available. You do not want to compromise and choose a house just because you can purchase it with a rent-to-own agreement. You need to make sure that they have houses within your budget that are available for this program. 

Reasonable Interest Rates

As a potential rent-to-own borrower, you should understand that you are going to have to pay higher interest than other borrowers. However, interest rates are typically different for each rent-to-own lender that you talk to. Therefore, you want to shop around to make sure that you find the lowest interest rates that are available. If you can find a lower interest rate, it can provide you with a lot of flexibility in your monthly budget and allow you to spend the money in other areas.


The rent-to-own industry is full of scams. Therefore, if you plan on getting involved in it, you will want to make sure that you are dealing with a reputable company. Check with others to see what they are saying about this particular company. Get online and read some reviews about them and determine what the general consensus about them is. If you are dealing with a scam, you should have no trouble finding an angry customer willing to share his or her story.

In addition to checking online reviews, you should also check with the Better Business Bureau. They should have a detailed profile about the rent-to-own lender and will be able to give you their track record in the industry. If there is a high number of complaints against them, you will be able to tell immediately.