Rent 2 Own Programs
We sell homes in 3 ways, 2 rent2 own programs, and then the traditional "For Sale" The rent 2 own programs are: A Lease Option program, and a Lease Purchase Program.
With the lease option, you put a down payment down, pay monthly for 2 years and then need to qualify for a loan to purchase the home at the end of the 2 years. Typically half of your down payment is applied to the purchase in 2 years. We also use an equity building account that accrues equity with each on-time monthly payment. Each monthly payment that is made on-time adds to this account usually $100 depending on the arrangement. At any time under 2 years you can purchase the home at the purchase price that you know from the start. When this occurs, we cut a check to the escrow company the balance of your equity account as your down payment for the closing. With the lease purchase you can expect a lower monthly payment during the 2 years, but will have to be approved for a loan in order to purchase the home in under 2 years.
The Lease Purchase program requires no loan approval. It typically has a higher monthly payment, however upon completion of the agreement, the property is deeded to you free and clear. While agreements vary from house to house, it is typical to expect $4000 down payment, $1200 a month or more for 8-10 years to purchase a house that is listed for $50K using Lease Purchase The payments are also directly related to the purchase price, the higher the purchase price, the higher the payment. Also, because it's a 8-10 term, the payments are considerably higher as compared to a 30 year mortgage, so this payment program typically only works for homes under 50K before the payments become unaffordable. We pay for annual Property taxes, however insurance is the responsibility of the buyer. Upon completion of 8-10 years of payments, the house is deeded to you free and clear.
While there are qualifications for the Rent 2 Own program, the focus is on qualifying individuals or families on their ability to complete the purchase. This can allow an individual time to repair a past credit situation, or to build up additional savings. The focus is on making sure you have 1) enough down payment, 2) enough income to cover your monthly payment, 3) the high probability of getting a loan within 2 years (if applicable for Lease Option).
Are Traditional "For Sale homes" are homes that we've bought in foreclosure and have done a complete rehab on them. Because of the amount we've spent to rehab them, we're looking for a traditional sale for these homes.
We also target homes that can be purchased from foreclosure auctions. These homes can take a few months to acquire, and come with some risks (not allowed to see the inside of the house ahead of time), but for a relatively small $1000 deposit, a home can be acquired. if after putting a $1000 deposit down, and seeing the inside for the first time approx 3 months later, if you do not approve of the condition, we'll refund the $1000 deposit and you can be released from the contract. If you move ahead, you make the rest of the down payment and take possession of the home. After 2 years or less of monthly payments, having completed the purchase, you're likely to be buying a house for $10,000-$25000 less than what it's worth, giving you instant equity and a great deal!
We'd also like to make you aware of the typical timelines with the Rent2Own program. If you're purchasing one of our homes we have already rehabbed, the process can be completed in as little as a few days. If you're interested in a home that we're currently rehabbing, the process can take between 2-3 weeks.
Interested? Then Fill Out a Rent 2 Own Pre-Qualification Form Now