Frequently Asked Questions About our Rent to Own Program

 Our rent-to-own program allows tenants to pick out and rent a property that they want to live in, with the option to purchase it later at a future set date. A portion of the rent you will pay is credited toward the future purchase price, giving renters an opportunity to build equity while they rent the home. 

No, we are not lenders and do not intend on replacing mortgages. We are here to act as a stepping stone to prepare you and help you get ready to obtain a mortgage in the next 2-4 years. 

From applying for the program to moving in can vary from case to case. Typically we will fully approve you for the program within a week. From there, the amount of time to find your home can vary, but we typically recommed you anticipate that it could take anywhere from 30-90 days from starting to look for your home to move in day.

The timeframe on how long the program takes is flexible to each persons situation, but typically can take between 2-4 years. 

When purchasing the home, the property is based on today's market value of the property or the price that the seller has set. From here, based on the area and property type, we will look at historical data for property appreciation rates. Based on this data, we will take a conservative perccent to increase the property's value by on a year over year basis, and determine the future value of the property that way. For example, if the data shows an annual appreciation rate of 7-8%, we will decrease this amount for a more conservative number around 5% appreciation. Then depending on the amount of time from when you first move into the property, to purchasing the property (usually between 2-4 years) we will adjust the property value according to this appreciation rate to find your future purchase price amount. The length of time you will take to complete the rent to own program will help determine the future purchase price. 

There are many benifets of having a pre set future purchase price. A few of these benifets can include:

-as the market appreciates above the pre determined purchase price, you get to build equity in the house you will be purchasing. This is typically likely as we take a lower appreciation percentage than what the market has done in the past, based off the data.

-Pre setting the purchase price removes uncertainty in how affordable the house will be once you are ready to purchase it

-the fixed purchase price means a fixed down payment you need to work towards which means you aren't always chasing the increasing prices of the real estate market

-Protects you from market fluctuations, ensuring affordability.

-A fixed price means a stable down payment, without rising home prices.

-If the market value exceeds the fixed price, you can build equity through the program.

Yes! First we will first pre approve you for a purchase price limit, and then you can pick out your dream home. Note that if the property you choose needs immediate repairs that isn't within your purchase price limit, we may guide you to purchase a different property better suiting your budget.

Yes! We want you to feel as much at home as possible, and improving the house to your liking is part of that. After all, it will be your home at the end. 

A minimum of 5% or $15,000 down payment is needed to qualify for the rent to own program

A downpayment is required up front because it's similar to buying a home. You will need a portion of the down payment to start, and the rest is saved up through the rent credits you will pay into through the program's term. All of these payments will come back to you in the end if you choose to purchase the house. 

You are responsible for the maintenance and upkeep of the home. As a homeowner in training, maintenance is essential to retaining the value of your property and something you must take the initiative on.

Your monthly payment is calculated based as if you were the one owning the home. Therefore, it will include property taxes, a mortgage payment, insurance and additional credits prepaid to help you save for your down payment. Utilities will also be your responsibility as a homeowner to be. 

You are responsible for cutting the grass and shovelling the snow. Any further landscaping that you may want to do is welcome, and will add value to your property, therefore adding equity in your pocket. 

Yes. A home inspection would be required and completed by a lisenced home inspector before purchasing the property to minimize the amount of unforseeable upkeep costs that may be incurred by the proeprty in the near future. 

Although saving money on your own is an option, there are many advantages to using our rent to own program to help you into homeownership instead. A few of these advantages include:

-Potential savings: with house prices in popular markets appreciating upwards of 10-15% annually, our built in appreciation of only 5% annual could mean big savings and building equity in your property, even before you own it

-Instead of saving and waiting to build up the full down payment, you can move into your dream home today and save while you live in the house you really want to live in. 

-Structure and accountability: Our prorgram keeps you accountable to achieving your goal of being a homeowner through our structured system and help

Pricing will vary depending on the initial downpayment you make, cost of the home, and monthly savings. The 2 main costs incurred through the program would be:

1. Before moving in, you will make an initial deposit (minimum of 5% of the home value or $15,000) and this would go directly towards your down payment savings, and would be redeemed back when you purchase the house at the end of the program

2. Your monthly payment (rent + savings) -  Your monthly payments are determined by the home's purchase price, the length of time you plan to rent before buying the home, your target down payment savings by the end of the rent-to-own program, and the initial down payment you're willing to provide at the start. 

 The larger your savings goal, the more you'll need to save each month in order to reach it by the end of the program. 

Once you are qualified for the program, we will give you a shopping budget and help to connect you with a realtor to assist you in finding your dream home. 

No! Applying to our rent to own program is no obligation and completely free

If a mortgage cannot be obtained by the end of the term, we will work with you to extend the program until you can qualify for a mortgage. Our goal from the beginning is to help you into homeownership, and we will work with you until that happens. 

Unlike renting a home, there will be no restrictions on pets. We believe you should be able to keep your pets in your home!