 | Why rent-to-own? |
| | It is the American dream to some day own your own home. No one likes paying rent, knowing that you never get any of it back. But to buy a home you have to have a large down payment and have perfect credit history, don't you? Well, that is the ideal but not absolutely necessary.
| | | How does it work? | | | The figures below serve as examples only and do not reflect actual prices of any listed property. Please read the documentation attached to the property you are interested in.
As an example, you can rent a house with a deposit of $600 and a monthly payment of $605. In order to rent-to-own, you deposit $2,000 and pay a monthly payment of $705 for the next 24 months. Although you pay an extra $100 per month, I actually give you a $126 per month credit toward the purchase. The extra $126 per month and the deposit of $2,000 all goes as a credit toward the purchase of the house so that you will have $5,024 at the end of the 24 months to apply toward the purchase. There is also an option for a $1,000 deposit with $755 monthly payment. If you are not sure you are ready to start the rent-to-own, you can rent for the first six months and then decide.
| | | How long does it take? | | | The figures below serve as examples only and do not reflect actual prices of any listed property. Please read the documentation attached to the property you are interested in.
In the above example, you will have at least $4,840 credit toward the purchase in two years. But, you can buy the house anytime you are ready. Lets say, for example, you get a large income tax refund next year or a bonus at work that you could put toward the down payment. You can exercise your option to purchase as soon as you are ready. If you have had credit problems in the past, you have some time while you are building up your purchase credit to get your credit history stabilized. We will be one of your best references if you make your payments to us on time. We recommend you begin working with a mortgage company immediately to see what criteria they need to approve your loan. We can recommend one if you are ready to get started.
| | | What is the purchase price? | | | We will give you the current fair market value of the house. During the next two years, this price will be locked in and even though the house can appreciate in value, you are guaranteed that this price will not go up if you purchase within the two years.
| | | What if it takes longer than two years to get approved for a loan? | | | Our goal is to help you eventually buy the house. That is how we get our money back on our investment. At the end of the two years the option to purchase will have expired. But, we will work with you as long as it takes if you are otherwise a good tenant. With mutual agreement of both parties, the rent-to-own can be renewed by adjusting the rent and purchase price to reflect current market conditions while preserving your purchase credit.
| | | What if I change my mind? | | | This is the biggest risk to you. If you change your mind, you are obligated to rent for one year, but the additional deposit and extra money you paid each month is non-refundable. It is only a credit toward the purchase if you eventually buy the house. In other words you wouldn't want to get into a deal like this unless you fully intend to someday purchase the house.
| | | What about maintenance? | | | After the first 30 days, you will be responsible for any minor maintenance up to $150 per incident. We will be responsible for anything over $150 until the house is yours.
| | | Can I have pets? | | | Approved pets allowed with an additional $200 pet deposit which also goes as credit toward purchase of the house.
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