How does your Rent to Own Program Work?
It’s simple. Tell us about your dream home! We may have the one you want today! You can lease your new home with the exclusive right to purchase it at a later date at a price agreed upon today. Our tenant-buyers love our program because it gives them the time they need to save up for a larger down payment, clean up past credit problems, sell another home, and even try out the neighborhood before buying! Our Lease with a Right to Purchase Program (the “RTP Program”) allows you to find a home that you want to rent initially, but who may also like to buy at any time within the next three to five years. We believe that there are many households who may be thinking about buying a home but for whatever reason would like to rent at the current time. You can lease the home for up to three to five years, and you may purchase the home at any time at a predetermined price in accordance with the Right to Purchase agreement.
What happens when I apply for a home?
Here is a summary of our process:
- We offer a low cost pre approval after a simple interview..
- Your application will be processed, and if you are approved…
- You then get to select a home from hundreds of available homes…
- Keep in mind that all homes may not qualify for the program.
- We also offer a “Custom Home Finder Program” managed by a licensed Realtor…
- Sign a lease and right to purchase agreement, we give you the keys and the home is yours!
- We help you during your rent to own period to repair your credit and tell you what you need to do to get a mortgage in 1-5 years.
- Every member of your household who is 18 years of age or older must complete the Pre-Qualification Application and the Full Application. The Full Application requires certain information, including residence and employment history, for each member of the household. You also must provide income verification for each member of the household whose income is to be considered in determining the rent approval amount in order for your application to be considered complete. If you are moving from a different state or starting a new job, we will need confirmation of your new job and income.
- We have certain minimum criteria for our program. Your household must have an annual income of $50,000. You must have stable employment. We cannot accept you into our program if you or anyone in your household has a history of eviction or a pending bankruptcy. Everyone in your household will be subject to a criminal background check.
How long does the process take?
If we have the home you like, it may only take 5-6 weeks to move you in!
What are my costs?
The pre approval interview is easy and free. A one time household application is 75.00. Once approved, a refundable lease deposit is required based on a multiple of the monthly rental amount. Generally, we require a deposit equal to two months’ rent. This deposit is not applied towards your rent. If you decide to leave the home at the end of any one-year lease term and you have been in compliance with the terms of the lease and return the home in the same condition it was in when you moved in (normal wear and tear excepted), the full deposit will be returned to you or credited to the purchase price if you buy the home. The full deposit (less any outstanding charges owed) is also returned to you if you exercise your Right to Purchase the home.
How can I buy a home when I have bad credit?
If your credit score is 550 or greater, we can help. Through our Rent to Own program, we can help you improve your credit over time. Your ability to make reasonable monthly payments and your desire to be a homeowner are most important to us. During your lease term, we work with fantastic mortgage consultants and lenders who will help arrange a permanent loan for you. It is absolutely critical that you pay your rent on time every month in order to get approved for a mortgage.
Can you help me if I have a foreclosure or bankruptcy on my credit record?
Yes, we can help you if you have experienced a bankruptcy or a foreclosure. We can help you if you have any type of negative credit history or even no credit history at all. We will put you in touch with the best mortgage consultants and lenders in the state, and will be here for you every step of the way.
I am renting now, how is this different?
This is a way to help you get started NOW toward BUYING your own home. You will have a lease with right to purchase in one agreement!
Do I have to ‘qualify’ for this program?
With a credit score of at least 550 and household income of 50,000 or greater, you are well on your way to pre approval for our program. We take several factors into consideration when reviewing an application, which include household income, rent-to-income, and debt-to-income ratio, rental and housing history, employment history, criminal history, and FICO® score. We consider the profile of the entire household when reviewing an application. If your application is denied, you will receive notification in writing.
How do I find a home once I’m pre approved
You will work with us to search for homes that meet our purchasing criteria. Generally, this means that the home should be:
Located in an approved community.
Listed for between $100,000 and $450,000.
Located on a lot no more than three acres with a minimum of two bedrooms;
A single family home or fee-simple townhome;
A traditional sale. Short sales, auctions, and REOs are not eligible for the RTP Program;
Free from material deficiencies;
No guest houses / in-law suites with separate entrances;
Once you have selected a home, we will take care of the rest.
How long is the Rent to Own period for?
Typically we can give you 1-5 years before you would need to complete the purchase. Each property is treated individually and we try to accommodate your own situation. However, you may buy at any time within the length of the agreement. You do not have to wait till the end of the agreement.
How flexible do I need to be?
The current market conditions play a big role. There are a lot of people looking for quality rent-to-own homes. If you’re looking to rent to own, we recommend you be reasonable in your expectations.
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 and is affected by the local market conditions. With a bit of luck and timing, you may end up profiting from improved property values over the term of the agreement.
Do you arrange for owner financing?
In some cases we may have available homes with owner financing, but usually we create Rent to Own opportunities. We also work closely with licensed mortgage brokers who work with multiple lenders to find the right loan for you when you’re ready to buy.
What about pets?
We do allow up to three pets (cats or dogs) with a max weight limit of 180 pounds total. For dogs, you must NOT have a Doberman, Pitbull, Rottweiler or Mastiff. We do NOT allow for other animals such as pigs, horses, chickens, goats, etc. There is a $300 per pet fee in most states. This fee is due with the required deposit and is refundable in the event you purchase the home. Otherwise, it is not refundable.