How Does the Program Work?
The Rent-to-Own program is an opportunity for you to own your own home when you thought
it wasn’t possible.
The goal of our Rent-to-Own program is to qualify you for conventional bank financing
in 24 months or less. Don’t let this scare you. We will be with you along the way.
We have a 3-phase approach:
- First, we send you to our credit improvement specialist. She will take a look at
your credit situation and let you know what you should do to establish stronger credit.
She’ll provide advice and help. She will let us know how long it should take you to
qualify for a mortgage, usually 24 months or less. She does this only for the cost of
a credit report, because she hopes to obtain the financing for you.
- Second, you will need to put a 3-5% down payment on the house. This deposit is
applied to the price of the house, which will reduce the amount you will need to finance
at the end of the lease period. Most lenders require a 20% down payment
($20,000 or more). This is your chance to purchase a house with very low money down.
- Last, we set the monthly lease payment to be near what your monthly mortgage payments
could be. This will show the lender that you can afford the payment, and that you can
reliably meet the payment schedule. The home also may have appreciated enough during
that time so that you could be coming into it with even more equity.
At the end of the lease period, if you have followed the instructions of the credit
specialist, you should have improved your credit. Once bank financing is obtained,
you’ll become a “homeowner”, and you would begin paying your monthly mortgage payment
directly to the lender.