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Rent to Own
We also specialize in
rent-to-own homes, which allow just about anyone to
own their own house — even if you have a poor credit rating or not
enough cash for a down payment. Click on our rent to own homes
below to view.
no rent to owns available at this
time - check back often
What exactly does Rent to Own mean?
With a rent-to-own agreement,
a portion of your monthly rent goes towards
your down payment for the purchase of the home.
This way there is no need to
wait until you have saved up enough for a down payment or until your
credit rating is adequate to allow bank financing. This allows
you to live in your own home even before you've saved up enough for
a down
payment!
Stop being a tenant and begin
investing in a home today.
What happens
if I decide not to buy the house?
"So what happens if I change my mind
and don't like the house, or if I'm transferred to another city,
or if my financial situation changes?"
Our rent-to-own agreements will not
lock you in. If your circumstances change, at any time you can
cancel the agreement and walk away without losing anything besides
the down payments you have already made.
How much do I have to pay per month?
The monthly payment for a rent-to-own
agreement will depend on your budget. The larger your payments, and
the longer you make them for, the larger the accumulated down
payment will be when you exercise your purchase option and get a
mortgage in your own name.
To secure the property in the
beginning, you will also need to put down a deposit on the house.
We like to see around 2% to 2.5% of the purchase price as a deposit,
which is credited towards your down payment when you buy out the
lease.
As a rough rule of thumb, the payments
on a rent-to-own home may be around 40% more per month than a rental
property. The extra payment amount is your investment into owning
your own home. You can negotiate for how long you want the
rent-to-own agreement to last before you have the option to buy, and
how much you want your monthly rate to be.
An
example of a rent-to-own agreement
Let’s say that you are renting-to-own a house worth $157,900 that
would normally rent for $1100/month, in an area that is
appreciating by 5% per year. Here’s how the math would work for
different lengths of a rent-to-own agreement, assuming you want to
build up a 10% down payment:
2.5% deposit
Buyout price (5% appreciation):
Goal of 10% down on buyout:
Months of lease option:
Monthly lease option payment:
Monthly market rent for house
Total monthly payment (incl. rent): |
1 year
$4,145
$165,795
$16,579
12
$1036
$1100
$2136 |
2 years
$4,352
$174,085
$17,408
24
$544
$1100
$1644 |
3 years
$4,570
$182,789
$18,279
36
$380
$1100
$1481 |
4 years
$4,798
$191,928
$19,192
48
$300
$1100
$1400 |
5 years
$5,038
$201,525
$20,152
60
$252
$1100
$1352 |
At the end of your rent-to-own
agreement, both your initial deposit and the monthly payments that
you have made will be subtracted from the buyout price, so the down
payment for your own mortgage is covered. We can also schedule an
appointment for you with our mortgage broker to see if you would
qualify for a smaller down payment, in which case your monthly
payments could be even less.
What if you
don't have a home I like?
Let us know what kind of house you are
looking for and in what area. We may already have a rent-to-own
lead there for you. Or if not, we can find one.
In a matter of a few months, you could
be living in your very own home!
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