Owning a home is probably one of the most important achievements you’ll make in your lifetime. Building up your credit, saving for a down payment, and finding a home in your price range that fits your needs takes hard work and dedication. Affording a home can be challenging and many people choose to rent throughout their entire lives because of this. However, there are options available to help renters become homeowners.
The Rent 2 Own process is fairly simple and is a win-win situation for both the buyer and the seller. The program gives you the opportunity to enjoy a home before you can actually finance. If you like the home, you can move in with the minimum down payment required, the first month’s rent, and signing the agreement. The agreement gives you the exclusive right to purchase within a specified time frame; typically 12 months. Once you’re able to finance, your initial down payment will go toward the principal and a percentage of the monthly rents will go towards the costs to close the sale of the home. Think of it as though you’ve already bought the home, but financing and closing with the bank is about 12 months out.
Why Rent 2 Own?
If you’re struggling to get a loan, need 6 months time in at a new job, or need two years of tax returns to substantiate your new business income, the Rent 2 Own Program could give you the time you need to meet the lender’s requirements. Here are some reasons why the Rent 2 Own could benefit you.
- A Fixed Price
The price of the home will remain the same regardless of housing market price increases or fluctuations.
- Exclusive Rights to Purchase
Our Rent 2 Own gives you exclusive rights to purchase the home you get into. We fully expect you to succeed in the program and purchase this home. It won’t be marketed, shown, or sold while you are in the agreement/under contract.
- Challenged Credit? It May Not Matter
Your credit history might not be pitch-perfect, and can even prevent you from being able to secure a loan for the home right away. The Rent 2 Own program may be able to help. If you are reasonably able to resolve your credit issues and obtain a loan within the timeframe offered, it’s possible for you to Rent 2 Own right away and enjoy your home.
- Make Your Rent Count
Unlike a traditional rental where all of your rent is going toward someone else’s pocket, the Rent 2 Own program uses a portion of your rent to go toward the costs needed to close the sale of the home.
What Happens If I Choose Not To Purchase the House
If you decide that you do not want to purchase the house by the end of the set timeframe, you will not get any of the money you paid back. As with many rent-to-own programs, you will be responsible for all maintenance and repairs for the home. Any repairs that need to be made before you leave may come out of your pocket; it all depends on the nature of the repairs. The biggest advantage of the rent-to-own process is being able to enjoy a home before you purchase it, but if you don’t purchase the home you’ll be leaving all the money you’ve put into that home behind. This is a stepping stone to the traditional purchase process, which is why you want to be sure you see yourself purchasing the home before you get into any rent-to-own contract.
If you think this Rent 2 Own option might be right for you, give us a call at 316-202-1630 to get prequalified!