Our First Time Buyer program is a limted time offering that takes advantage of the first time home buyer credit offered by Uncle Sam. Ask whether you qualify for this program.
You must understand that building or rebuilding your financial strength is a commitment on your part.
No one can guarantee you will be able to get a mortgage.
Most people can eventually get a mortgage, but you must do your part.
If you do your part and correct past deficincies, you might be surprised how quickly you can qualify for a mortgage.
Do you need perfect credit today?
No.
However, if you don't qualify for a mortgage today, you won't qualify tomorrow unless you make some positive changes.
For this program, the goal is not to make your financial situation worse.
Home ownership can be wonderful, but being crushed under a house payment can be a nightmare.
There are specific steps that should be taken to make sure your credit score is improving.
Our recommendation (and sometimes requirement) is that you communicate with someone who is qualified to help you with credit repair.
Many mortgage companies specialize in working with people who have had credit difficulties.
Taking steps to improve your future is the first step in getting into a great home opportunity.
If you don't pay on time, you don't get the credit toward purchase that is built into a Rent to Own program.
Payment must be made on time for the Rent to Own system to help you own your own home.
One of the benefits of a Rent to Own opportunity is a letter of reference from your Landlord to the mortgage company
at the time you plan to purchase your home.
If you are reliable and timely in your payments, the qualification process for a mortgage is simplified and accelerated.
If you are NOT reliable in your payment history, you might never qualify to own a home.
You must start thinking and acting like a Home Owner.
You will be responsible for all of the maintenance of the property.
Major structural issues are not your responsibility during a Rent to Own period.
However the day-to-day maintenance and repairs, like fixing a leaky toilet or a garbage disposal
and keeping the property clean and looking nice are your responsibility.
Taking on the responsibilities of home ownership begins the day you sign up for a Rent to Own opportunity.
To sign up for a Rent to Own opportunity there is an up front money requirement.
It is not correct to call this money a deposit.
It also is incorrect to call this money down payment.
The up front money required to get into a Rent to Own opportunity is called Option Consideration.
Option Consideration is money that is applied toward purchase of the home at the time you purchase the property
and get your own mortgage.
Each month that your payment is received on time, a portion of that payment is added to your Option Consideration money.
Depending on the lender used at the end of the Rent to Own period, Option Consideration could go up to 100% toward your down payment.
If your lender does not allow this, the Option Consideration can be used to reduce the purchase price of the home.
If for some reason you choose not to purchase the home, Option Consideration is non-refundable.
You must understand that building or rebuilding your financial strength is a commitment on your part.
No one can guarantee you will be able to get a mortgage.
Most people can eventually get a mortgage, but you must do your part.
If you do your part and correct past deficincies, you might be surprised how quickly you can qualify for a mortgage.
Getting into a Rent to Own home can happen very quickly.
The time it takes depends on the inventory of houses on hand at the moment.
Sometimes it can take a few weeks, or a few months, to find the right home to fit your needs.
It is important to make sure you are prepared to make on-time monthly rent payments in the amount required for the home.
It is also important that you have up front money available for Option Consideration.
Rent to Own is the financing system we use to enable you to own your next dream home.
Rent to Own combines a rental lease for a piece of property along with an option to purchase that property
within a specified period of time at an agreed upon price.
You as the new homeowner pay an option fee up front that is credited toward the purchase price.
Each month you make on-time rent payments, you improve your credit score and increase your ability to get a conventional mortgage.
You also build a down payment toward the purchase of the home as a portion of each on-time payment is applied toward the purchase price.
In this way you are able to acquire your dream home more quickly than a traditionally financed home.
Always make sure that you make your payments on timeevery month.
Every single month that you pay your rent on time, a portion of your payment gets credited toward the purchase price of the home.
This Option Consideration is applied toward purchase when you choose to purchase the home and get your own mortgage.
Depending on the arrangements with your Landlord, this Option Consideration can build up quickly and help you in the process of buying a home.
The amount of Option Consideration required to get into a Rent to Own opportunity varies from house to house.
There are some general rules of thumb to keep in mind.
When you get a conventional mortgage you normally need to have a 20% down payment to purchase a property.
When you buy a home on a Contract for Deed, it is common to require a 10% down payment to begin the contract.
Rent to Own normally requires a 3% to 5% up front payment. This is significantly less money than the other purchase options.
For example: Consider a $150,000.00 property.
Conventional mortgage down payment:
$30,000
Contract for Deed:
$15,000
Rent to Own:
$4,500 - $7,500
Note: Some Landlords use different methods to calculate their Option Consideration requirements.
A traditional mortgage generally requires a large down payment.
If you as the buyer have credit challenges, the down payment requirement can be even bigger.
With a traditional mortgage the first year's payments mostly go toward paying interest.
With many Rent to Own programs a larger portion of the payment goes toward reducing the purchase price.
In many cases you can literally rent your way to greater equity in your own home.
A special benefit of Rent to Own is that you can try a home and neighborhood before you commit to buying.
If it turns out that you can't stand your neighbors, you're not out a lot of money.
You can be completely satisfied with your home before actually buying it.
Real estate is one of the safest investments around.
If a home goes up in market value during the rental period, you, the renter keep the profits!
When the Rent to Own period starts, you know the price of the home.
Any appreciation that happens will be yours to keep as equity in the property.
Also keep in mind that improvements you make to the property are also yours to keep.
It is in your best interest to invest in your home, making improvements that will build equity as you go along.
The investment you make in your own home will return great rewards and make it easier to purchase and get financing later.
With a traditional mortgage, better credit means lower interest rates.
With a Rent to Own program, you have the time needed to rebuild your credit before applying for a mortgage.
An excellent rental history during the Rent to Own period can even help toward qualifying for a better, cheaper or larger mortgage.
