Stillwater Diversified

Rent To Own

Rent to Own is offered on existing homes in our inventory.

We offer Rent to Own in order to assist our clients as they move toward home ownership. We understand how difficult qualifying for a traditional home loan can be, especially when faced with loan applications that seem to force you into a mold that doesn’t fit. Our approach to granting approval is unique in that it is built upon a foundation of lending that understands you. 

Rent to Own is not meant to be the end of your path, but rather a step in your story toward success. 


What is Rent to Own? 

A Rent to Own transaction has two parts: the rental agreement and the option contract. Together these create an agreement in which you, the Rent to Own Client,  lock in today’s purchase price for up to 3 years and live in the home while paying rent. 

The purchase price is locked using an option contract and recording a memorandum of option with the Register of Deeds in the county where the home is located. This ensures the property cannot be sold out from under you and no additional liens or encumbrances can be placed on the property. This process creates a secure transaction giving you peace of mind. 

As a Rent to Own Client Borrower, your monthly payments are reported to the Credit Bureaus. On time monthly payments may assist in improving your credit score and preparing you for a HomeLend Agreement or a traditional home loan. 

Are Pets allowed in Rent to Own? 


Yes, pets are allowed under the following conditions.

  • Pets are subject to pet fees
  • Pets above 60 lbs. and/or breeds considered by the Insurance company as known vicious such as Pit Bulls, American Bulldog, Rottweiler, German Shepherd, etc. require additional fees and may need to be added to the insurance policy. 

How do I qualify for Rent to Own?

  • submit an application
  • pass a background check
  • show a debt to income ration of less than 50% 
  • provide verification of income
  • show proof of funds for down payment
*Debt to income ration must include the new Rent to Own monthly payment.

What are the fees and costs of Rent to Own?

  • $1,750 no hassle closing costs
  • 7%  Down Payment
  • $300 one time nonrefundable fee per pet
  • $50 monthly fee per pet 
*Pets considered vicious by insurance company may be subject to additional one time fees not to exceed $500 per pet. 

What determines the price of Rent to Own? 

Your Rent to Own monthly rate is determined by market rental rates, using rental comps of similar homes in the area. 
The purchase price is determined by a Comparative Market Analysis (CMA) which is prepared by real estate professionals. The CMA is made available to you free of charge. 

How much of my payment is applied toward the purchase of Rent to Own? 

The monthly payment portion of the Rent to Own is treated as rent and does not apply toward the purchase price. However, monthly payments are reported to the Credit Bureaus which may assist in strengthening your credit score. 

The option contract is the purchase price minus the down payment. This means that your full down payment is applied toward the purchase price. 

Who is responsible for home maintenance on a Rent to Own home? 

As a Rent to Own Client Borrower, you assume full responsibility for your home’s maintenance. We view and treat you as a home owner. 
A copy of the latest property inspection is made available to you free of charge. 

Who is responsible for insuring the Rent to Own home? 

As a home lender, we carry insurance on all Rent to Own homes. 
As a Rent to Own Client Borrower, you are required to carry renters insurance. 

Are there any warranties or guarantees with Rent to Own? 

We offer a full 3 day right-of-rescission on Rent to Own contracts. 

Right-of-rescission means you can break your agreement for any reason for up to 3 days following the signing of documents. 

If the 3 day right-of-rescission is used, we do retaining 20% of the down payment, as payment for services rendered, and return the balance to you within 10 days.

What happens if I am unable to qualify for a HomeLend Agreement or a traditional home loan? 

We encourage our Rent to Own Client Borrowers to take advantage of the full 3 year term offered with Rent to Own. There are no early payment penalties if you find you qualify sooner and want to move to a HomeLend Agreement or a traditional loan. We also credit the down payment you have paid under Rent to Own, toward your HomeLend Agreement down payment, provided your Rent to Own has not expired. 
At the end of the 3 year term, if you are not ready to move on from Rent to Own, we offer you the opportunity to renew for one additional 3 year period. 
If your situation changes and Rent to Own is no longer a good fit, we offer Debt Forgiveness as an alternative to eviction.