Buyer FAQ’s

How does your Rent-to-Own Program Work?

  • It’s simple!  After you’ve filled out our FREE Online Application, one of our buyer’s agents will contact you within 24 hours.  Your agent will want to find out where you want to live, what you want to find in a new home, how much you can afford and how soon you would like to move.
  • Meanwhile, your application will be reviewed by a mortgage lender.  This step is necessary to discover how much house you can afford based on your income.  Your application information will also help determine what length of time will be necessary for you to qualify for a home loan.  Lastly, they will analyze your current credit status and provide a scope of what needs to be repaired or built up during your lease-purchase period.
  • Next, you will be presented with properties that match your criteria.  After you preview and select your favorite one, your agent will help you negotiate the best terms possible.  These terms include:  *Monthly Payment, *Length of Lease, *Rent-Credits, *Down Payment, *Purchase Price, *Possession, *Roles & Responsibilities, *Repairs, *Utilities, etc.
  • Once the lease has been negotiated with the seller, you will deposit a check for your down payment and the first month’s lease to the Escrow Company.  In addition to the monthly rent credit, 100% of your down payment deposit is credited toward the purchase price when you buy.
  • Finally, keys will be delivered to you by the possession date.  In most cases the seller will meet with you and your agent at the property to go over miscellaneous insights or questions about the home.
  • You will continue to work with the mortgage lender throughout the lease-purchase period.  They will provide support and coaching to help you qualify to purchase your home in a timely manner.

Do I have to have a Down-Payment Deposit?

  • Yes, in all cases a down-payment deposit is required.  Typically you will need, at a minimum, 3% of the purchase price in addition to the first month’s lease payment.  For Example, if the home is listed for sale for $200,000 and they are asking $1,200 per month you will need approximately $7,200 for that property.
  • However, the amount of the down-payment can vary and may even be negotiable based on other compensating factors.
  • Contact us if you have further questions with regards to down-payment deposits.

Are Pets Allowed?

  • Pets may or may not be allowed based on the current owner’s instructions. However, we find that owners tend to be more flexible on this issue with lease-purchase transactions vs. a regular rental arrangement.

What happens after I apply for a home?

  • After you complete the Free Online Application, it is reviewed by a mortgage lender to determine how much monthly payment you can afford based on your income and current debt.
  • Your qualification is not based on credit history, however, your credit report is reviewed to determine what length of time will be needed for you to be able to qualify for a home loan.
  • You are then contacted by one of our Buyer’s agents to help you find, and secure your new home.

What if I have filed Bankruptcy or Have had a Foreclosure?

  • Bankruptcy does not affect your ability to qualify for our lease-purchase program unless if it has not yet been discharged.
  • A foreclosure on your credit is also acceptable, however depending on how recent it occurred, it will effect how soon you will be able to qualify for a home loan.  For Example, FHA Guidelines state that a foreclosure must be seasoned 36 months before they will consider financing a borrower.  If your foreclosure is recent, it will require negotiation of a 3-4 year lease-purchase agreement with a seller.

How long does the process take?

  • We have completed transactions in as little as 2 days from start to finish.  Typically however, you can expect between 7-14 days.

What are the costs or fees involved?

  • There is NO COST to qualify you.  Other costs like the Down Payment Deposit and Monthly Lease Payment will vary and in most cases are negotiable.

How can I buy a home when I have bad credit?

  • You can’t through conventional lenders, but you can with our help.  Through our Rent-to-Own program, we can help you improve your credit over time.  We are not extremely interested in your past credit status.  Your ability to make reasonable monthly payments and your desire to be a homeowner are important to us.  Our program was designed to support you throughout the lease-purchase period so that you can qualify to buy in the future.

I am renting now, how is this different?

  • This is a way to help you get started toward BUYING your own home.  Each month approximately 25%-50% of your monthly payment is credited toward the purchase of the home.  For example, if you were paying $1,000 a month in rent you would have at least $250 a month going toward reducing the price of the home. That’s a $3,000 price reduction after 12 months!

Do I have to ‘qualify’ for this program?

  • Yes, your qualification is widely based on 2 main factors.  First is your ability make the monthly payment based on your current income.  The second is meeting the down-payment deposit requirement of approximately 3% of the purchase price.

Is the down-payment deposit non-refundable?

  • Yes,  If you break the lease or don’t pay your rent, you forfeit all of your down-payment deposit.  You get your option consideration money credited back towards the purchase price of the home when you purchase it.

What other methods of option consideration are accepted?

  • Unlike most lending institutions, we accept borrowed funds for closing. If you have a close friend or relative willing to lend you money for your option consideration, you can use that with our programs. You may also be eligible to withdraw or borrow from your 401K to purchase a home without penalties.

How long is the Rent-To-Own period for?

  • The length of the lease-purchase period can vary based on your needs and the seller’s ability to work with you.  Typically lease-purchase contracts are negotiated for between 6-24 months.  Agreements can be made for shorter or longer than this, however in all cases, you can exercise your option to purchase at any time during the lease.

Is the price of the home established in advance?

  • Yes. The price of the home is decided at the time you sign the Lease Agreement unless otherwise negotiated and stipulated in the agreement with the seller.

Who pays the property taxes and insurance during the Rent-To-Own period?

  • The Home Owner does until you actually complete the purchase.

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