Frequently Asked Questions About Our Owner Financing and Rent to Own Programs
Q: How Do The Programs Work?
A: It’s simple. You move into a home that you will lease until you are ready to qualify for a mortgage to purchase it. Your Down Payment will apply towards the cost of the home. All the details, prices, payments, terms, etc. are in writing in contracts we review and sign before you commit any money. The contracts are binding on both you, the buyer, and the seller, so both sides are protected.
Q: How Do I Qualify?
A: One of the main qualifications is a sincere DESIRE to own your own home. We can help you with that goal with our Programs. A standard rental application is filled out and reviewed. You may also want to discuss this commitment with our mortgage advisor to get a clear plan on what it will take to position yourself for a mortgage at the end of the lease term. This may entail correcting credit issues, pay off bills, save for down payment, etc… But the important thing is, we do NOT qualify based on credit.
Q: What is ‘Lease Purchase, Rent to Own?’
A: We use Lease/Purchase, Rent to Own, and Lease/Option the same way. It means that you live in the house and make lease payments until you qualify for a mortgage and complete the purchase. Your initial down payment is NOT a rental deposit. It actually is two things: First, it is a down payment that will be applied to the purchase when you qualify for the mortgage. Second, if you were just leasing the house, then we could sell it to whoever we chose at the end of your lease. Not in this case, though. The “Purchase” part of our contract says that you have the exclusive right to buy the house, and the down payment is what you use to purchase that right. Since we are committed to selling ONLY to you, if you decide not to buy and move out for any reason, the down payment is not refundable.
Q: What’s my interest rate?
The lease payments are just that, lease payments – they do not go toward the purchase. This also means you pay no interest. It also mean you are not responsible for taxes or homeowners insurance. You should, however, get renter’s insurance to cover your things in case something happens like hurricane, flood, or fire.
Q: What Do I Have To Pay To Move Into A Home?
A: The Down Payment and first month’s rent are requited prior to move-in. These payments must be in certified funds (cashier’s check, Western Union or US Post Office Money Orders). Monthly lease payments thereafter are due the 1st of the month by check or cashier’s check. No cash.
Q: How Long Do I Have Before I Have To Close On The Home?
A: Each home we offer has a different set of parameters. Our usual term ranges from 12 to 24 months, but we can offer extended terms for most homes, if necessary
Q: What Type of Homes Do You Have Available?
A: We usually have several homes to choose from that are posted on this website. They are always homes in good neighborhoods with assorted amenities. If there is not one that meets your needs, we can document the type, location and price of home you are looking for and contact you if one similar becomes available.
Q: Who Have Sold Homes To In The Past?
A: Our buyers have “something” standing in their way to prevent them from purchasing a home today. Those issues vary…they may be saving for a down payment, credit issues, need time to increase their credit score to get a lower interest rate, time on the job, or may just need to sell a home in another area. Over the last few years, we have helped dozens of people who thought they were stuck wasting their money on rent for the rest of their lives to own their own homes.
Q: What happens if our term expires and we still do not qualify for a mortgage?
A: If you live in the house throughout the term of our program, make all your payments on time, and have been doing everything you an to get qualified, we will offer an extension to give you more time. However, since the original term of our agreement will have expired, the extension may include an increase in both the price and payment, so it is very important to discuss your situation with a mortgage broker so you know exactly what you need to do to be able to qualify within the time frame of the agreement.