Look, I get it, bad things happen to good people. That shouldn’t eliminate your capability of getting into home ownership. This is a program if you are looking to start fresh and dream of home ownership in your long term plan.
There are lots of bad programs out there but done with the right people in an ethical way, it can create a win-win scenario.
How it works:
- There will be what is called Initial Option Consideration which is typically 3%-5% of purchase solidifying your position in the program. This goes towards your down payment and purchase at the end of the term but is non-refundable.
- Typical term is between 2-5 years
- This will get you into the home of YOUR CHOOSING until you can qualify for your own mortgage
- A mortgage broker will verify when you can officially purchase and at what price you can go house shopping
- The purchase price today will be reverse engineered to ensure affordability
- You will have a pre-determined purchase price once the term is completed so you know exactly what to expect
- Monthly payments will be Market Rent, plus additional savings for your down payment. You will also be responsible for utilities, tenant insurance, and minor repairs and maintenance as with most houses.
At the end of the term, if your financial plan is followed, then you will have your down payment saved, mortgage approved, and the house will be yours. Congratulations!
Full disclosure, the investors and facilitators will make money too. They conduct this transaction as a business and get a return from market appreciation, monthly rent, and their own mortgage pay down. As with any investment there is significant risk for the investor and the return reflects that risk and commitment from those helping you out.
Getting into a Rent to Own program is not to be taken lightly and is a serious financial commitment for everyone involved. Free to call or email me to discuss more details or set up a consultation with one of my Rent to Own Project Managers.