Rent-to-Own
Advantages for the buyer/lessee:
· Term of Lease. Rent-to-Own buyers and sellers enter into a lease agreement with the home you have chosen for a fixed period of 15 months to three years. At the conclusion of the lease, the buyer will have the exclusive option to purchase the home from the seller.
· Purchase Price. The method to determine the future purchase price will be determined before the Rent-to-Own lease agreement is finalized and signed by both buyer and seller. This method is fixed and will not change after agreed upon by both parties.
· Down Payment. Rent-to-Own buyers are generally required to pay a non-refundable down payment to the Investor. This down payment is known as Option Consideration. Down payments are typically 2% of the agreed upon purchase price. This down payment will later be credited towards the purchase price of the home upon the completion of the Rent-to-Own lease term. Including first month's rent and security deposit, you will need $3,000 to $9,000 cash deposit to get started looking for your home.
· Rent Credit. In addition to the down payment credit, the Seller may offer monthly rent credits. A “rent credit” is a portion of the monthly lease payment that is applied to the overall purchase price if and when the Rent-to-Own purchase is exercised at the end of the lease term.
· Rent-to-Own Assistance. Sellers may ask the Buyer to seek assistance to help the Rent-to-Own buyers work to complete a successful purchase at the end of the lease term. The buyer agrees to participate in a credit repair program which will monitor a buyer’s credit throughout the term of the lease.
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· Make Your Rent an Investment. Both a portion of your monthly rent and your entire down payment at closing will be credited to your purchase price at the time of sale.
· Potential to Own Without Great Credit. Whether you’ve had late payments, a foreclosure, short sale or bankruptcy or simply haven’t had enough time to build up your credit, a Rent-to-Own home may enable you to build and/or repair your credit while renting to own your home.
· Maintain Your Flexibility. Rent-to-Own enables you to not only build your down payment for your home, but also gives you the flexibility to walk away from the property at the end of your lease term, should you decide you don’t want to make the purchase.
· Upfront Timing. The timing for moving into a Rent-to-Own home can be much shorter than purchasing a home, as much of the paperwork takes place at the end of your lease when and if you exercise your option to purchase and are approved for a mortgage.
· Credit Improvement Specialists Available. Loan officers are available to provide credit repair advice and assistance, and there is no cost to you for this service, depending on the lender. So it is important for you to speak with a lender who is knowledgeable in Rent-to-Own transactions prior to beginning your home search.
· Preparation for Home Ownership. The Rent-to-Own process affords you, as the buyer, the opportunity to prepare for what is necessary when owning your own home. Typically, you will be responsible for the daily maintenance and upkeep of the home and yard and all utilities, depending on the terms of the Rent-to-Own agreement.
· Privacy. The renter is not the owner on the deed in public county records.
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How do I get started? Click this link to stop wasting your rent money and to complete the form to get started right away. Sign me up! Contact me about finding your home
By the way, who else do you know that needs to rent-to-own, buy or sell a home? Call me and I'd love to help them, too.
