Buyer FAQ’s

How does your Rent-to-Own Program Work?

It’s simple.  Select any house listed from our inventory.  You lease your new home from us with the exclusive right to purchase it at a later date.  Our tenant-buyers love our program because it gives them the time they need to save up for a larger down payment, clean up past credit problems, sell another home, and even try out the neighborhood before buying. 100% of your option consideration money is credited toward the purchase price of the home, plus you may be eligible to receive a monthly credit towards reducing the purchase price every time you pay your rent on time.

What happens when I apply for a home?

Here is a summary of our process:

  • You will complete an application & pay a $35 application fee.
  • Your application will be processed, and if you are approved…
  • We will sit down with you and review your options.  You then get to select a home from our inventory.
  • If we don’t have a home you like, you can enroll in our “Custom Home Finder Program” and we will find a home for you.
  • We collect your option consideration money and your first month’s rent.
  • We give you the keys and the home is yours!
  • We help you during your lease option period to repair your credit and tell you what you need to do to get a mortgage in 1-2 years.

How long does the process take?

If we have the home you like, it may only take 1-2 weeks (or sooner!) to move you in.

What are my costs?

There is a $35 application fee to qualify you.  Other costs like option consideration money and rent will vary from home to home and will be tailored to fit your budget, so you can build a house payment history and qualify for a loan.

How can I buy a home when I have bad credit?

You can’t through conventional lenders, but you can with our help.  Through our Rent-to-Own program, we can help you improve your credit over time.  We are not extremely interested in your past credit status.  Your ability to make reasonable monthly payments and your desire to be a homeowner are important to us.  We work with fantastic mortgage brokers and banks who will help arrange a loan for you.  It is absolutely critical that you pay your rent on time every month in order to get approved for a mortgage.

Can you help me if I have a foreclosure or bankruptcy on my credit record?

Yes, we can help you if you have experienced a bankruptcy or a foreclosure.  We can help you if you have any type of negative credit history or even no credit history at all.  We will put you in touch with our exclusive network of mortgage brokers and banks who help people like you get back on their feet.

I am renting now, how is this different?

This is a way to help you get started toward BUYING your own home. Part of your rent payment goes towards the purchase. Instead of throwing your money away each month on rent and having nothing to show for it at the end of the year, with our Rent-To-Own program, each month approximately 20%-50% of your monthly payment is credited toward the purchase of the home.  For example, if you were paying $1,000 a month in rent you would have at least $200 a month going toward reducing the price of the home. That’s a $2,400 price reduction after 12 months!

Do I have to ‘qualify’ for this program?

Not in the usual sense of having to meet certain income and debt ratios, or achieving a certain credit score as would be necessary for most mortgage companies. Your credit and finances are not the restriction they would be with a conventional mortgage company. Although it actually makes sense to buy a home this way even if you could get conventional financing today, many of our buyers do have some issues that need time to be resolved.

How much option consideration money do I need?

We are usually very flexible with your option consideration.  Normally we require 3% – 5% up front option consideration.  We can offer you many options and we always do our best to work with whatever funds you have available. You can even start out on our Rent-to-Own program and then move to our owner financing program at a later date when you have the additional money.  The more option consideration you put down, the lower your monthly payment will be.

Is the option consideration money non-refundable?

Yes!  If you break the lease or don’t pay your rent, you forfeit all of your option consideration money.  If you don’t pay the rent, we have to pay the legal costs for an eviction and maintenance and marketing costs to rent the home to a new rent-to-own buyer. You get your option consideration money credited back towards the purchase price of the home if and when you buy it.

What other methods of option consideration are accepted?

Unlike most lending institutions, we accept borrowed funds for closing. If you have a close friend or relative willing to lend you money for your option consideration, you can use that with our programs. You may also be eligible to withdraw or borrow from your 401K to purchase a home without penalties.

How long is the Rent-To-Own period?

Typically we can give you 12-18 months, and sometimes up to 24 months, before you would need to complete the purchase. Each property is treated individually and we try to accommodate your unique situation.  However, you may buy at any time during the term of the agreement. You do not have to wait until the end of the agreement.

How flexible do I need to be?

You may need to be flexible in your terms.  There are a lot of people looking for quality rent-to-own homes.  If you’re looking to rent to own, we recommend you be reasonable in your expectations.

Is the price of the home established in advance?

Yes. The price of the home is decided at the time you sign the Lease Agreement and is not affected by the local market conditions.

Do you arrange for owner financing?

Yes, sometimes we sell homes with owner financing, but usually we create Rent-to-Own situations. We also work closely with licensed mortgage brokers and lenders who can find the right loan program for you.

Who pays the property taxes and insurance during the Rent-To-Own period?

Our agreement provides that we or the homeowner pay the property taxes and insurance!  You pay the monthly rent and utilities until you actually complete the purchase.