If you’re approved I will help you find the home you want in the home program. My home partners will buy the house and rent it to you and you will have three years of rent certainty with only a one-year financial commitment on the lease. Most importantly you can purchase the home you selected from the program at a price establish when you entered the right to purchase agreement, in accordance with the terms of the agreement. Homes rent to own gives an exciting opportunity for prospective homeowners.
How Rent to Own Works
Addressed issues in homes rent to own agreement are as follows:
1. Down payment:
There may be an earnest money deposit required. This is money held by a title company & kept in escrow until the option to buy is exercised.
2. Purchase price:
The purchase price is set according to today’s market, not in the future when the option to buy is exercised.
3. Legal title:
The tenant becomes a purchaser only upon exercise of the option to buy. This means the title will remain in the owner’s name until the landlord-tenant relationship ceases and the option becomes an absolute and binding contract of sale.
There are benefits for both sides in this type of transaction. The homeowner continues to receive rental income and gets to have the income tax deductions as long as they own the home. For the buyers, who will be the ones doing the rent to own home program they get more time to qualify for mortgage financing and depending on the agreement, receive a portion of the money paid as rent reflected toward the home sales price. Not to mention the joy of knowing soon the home will be theirs.
If interested in this type of alternative home ownership, please contact me so we can discuss it further. I will be happy to answer any questions you have about a rent to own home program and will be able to help you throughout the process.