|
What is rent to own?
Rent to own is a program where you rent a property for a determined time period. Once the initial time period expires you
are guaranteed the option to purchase the property in which you have already made "your home" for the price quoted
in the lease/purchase option agreement.
How does Rent to Own work?
You would sign a lease agreement for the determined time period. This time period is usually 1 year. When you sign the lease
agreement you would sign the lease/ purchase option agreement. Again, this option agreement guarantees you the right to purchase
the property for the specified price. The decision to purchase the property must be made sixty (60) days prior to the expiration
of the lease agreement. Closing must be done before the expiration date of the lease agreement.
How would Rent to Own help me?
Rent to Own could help you in the aspect of gaining a secure and steady payment history. You would also be encouraged to
sign up for our Down Payment Assistance Program, which will help you get a down payment. The down payment then helps reduce
your monthly payment once you are ready to buy the house.
Why do I need a down payment for a rent to own property?
Down payments are not required by all lenders or mortgage companies. However, if you have a certain percentage of the purchase
price of the property it could lower your monthly mortgage payments. Most importantly, having a down payment helps you qualify
for a mortgage loan.
|
