Rent to Own

How the rent-to-own process generally works:

  1. Select the Right Home:  Choose the best home for you with our guidance and support, this program covers most homes available for sale.
  2. Agreement:  The tenant and landlord (or property owner) sign a lease agreement that includes an option to purchase the property at a later date. This agreement outlines the rental terms, purchase price, option fee, and the length of the rental period.
  3. Down Payment:  The tenant pays an upfront down payment, which is typically non-refundable. This down payment grants the tenant the exclusive right to purchase the property within the specified time frame usually 2-4 years.
  4. Rent payments:  The tenant pays rent to the landlord, usually at a slightly higher rate than the average market rent. A portion of these rent payments may be credited toward the eventual purchase of the property, often referred to as a rent credit.
  5. Purchase decision:  During the rental period, the tenant has the option to buy the property. They can choose to exercise their option and proceed with the purchase or decide not to buy and continue renting the property.
  6. Purchase agreement:  If the tenant decides to exercise their option, a purchase agreement is executed, outlining the final purchase price, financing terms, and other details of the transaction.

Ideal candidates for rent-to-own program:

  1. Potential homebuyers with limited credit history: Rent-to-own can be a viable option for individuals who may not have a strong credit history or have difficulty qualifying for a mortgage. The rental period allows them to improve their credit and build a stronger financial profile, increasing their chances of obtaining a mortgage later on.
  2. Individuals with insufficient down payment savings: Some potential homebuyers struggle to save enough money for a traditional down payment. Rent-to-own agreements may allow them to accumulate a portion of their rent payments as a credit toward the purchase price, effectively building equity over time and potentially reducing the required down payment.
  3. Those facing temporary financial challenges: Rent-to-own can provide a solution for individuals experiencing temporary financial setbacks, such as job loss or medical expenses. It allows them to secure a future home while renting in the interim, giving them time to stabilize their finances before committing to a purchase.
  4. Potential buyers in a competitive market: In highly competitive real estate markets, where inventory is limited and prices are high, rent-to-own can be a way to secure a property when immediate purchase options are limited. It provides a chance to lock in a purchase price while continuing to rent and potentially benefit from property appreciation during the rental period.

It’s important to note that the suitability of rent-to-own can vary depending on individual circumstances and market conditions.

For further information please fill out the form below and I’ll contact you to discuss further if this is the right program for you!