Rent To Buy Options
Would you like to find your home, but you're not quite ready to buy? A lease with a right to purchase program may be a good fit
for you!
This program allows you to 1) Find the house you want to live in now, 2) move in, and 3) if you’re ready within five years of the initial move-in, purchase the house.
Your monthly rent is not applied to the cost of the home, but the agreement ensures you have first dibs on the property should you decide
to buy it within five years (Unless you’re in Texas, where it’s three). The
right to purchase does not obligate you to buy the home, but if you do decide
to buy, you can begin the process at any time in the five-year window.
If you’re interested to learn more, this is how it works ...
Call Nate for more specifics to see if this program will work for you. Call 571-494-1245 or email NateJohnson@1245team.com
Step 1: You apply for
the program and obtain approval
There are many reasons people go the route of leasing with a
right to purchase program: You may be repairing your credit, relocating, a
first-time home buyer, or simply concerned about the current housing market.
If you think this program may be a good fit for you, you can
get the approval process going online and receive a decision within
two days.
First, there are a few requirements:
- At least 18 years of age
- Annual income of at least $50,000
- Stable employment
- No history of eviction and no pending bankruptcy
- Acceptable criminal history (Every person in the household will subject to a background
check)
If you meet these requirements, you must provide proof of
income, verify you can pay for two months’ rent and submit a $75 application
fee. This information will be evaluated to reflect household rent-to-income and
debt-to-income ratios, rental and housing history, and FICO scores.
Step 2: You pick your
home
If you’re approved, here comes the fun part of picking your
home using the program’s online system.
The home you pick needs to fall within the following
criteria, and you’ll be working with a real estate agent to help you:
- It must
be in a community approved by the
program (based on a variety of factors including high school attendance rates
and any nearby features that may negatively impair a property’s value)
- The listing price must be between $100,000 and
$500,000
- It must have a minimum of two bedrooms and lot
of three acres or less
- A single-family home or fee-simple townhome
- A traditional or bank-owned property
For each home you view, you’ll be provided with some very
helpful numbers: 1) What you’ll pay
in rent for year one, year two, etc. and 2)
What the home will cost to purchase in year one, year two, etc..
Once you’ve picked your home, our agent will submit your property
for review. If your home is approved (You'll receive an answer within 4-6 hours) you’ll be provided with a schedule of rent
and purchase prices for each lease term. NOTE:
The rent increases by 3.75% each year, and the purchase price of the home increases
by 3.5% each year.
If you agree to the terms, it’s time to start packing! The
program will pay for a complete home inspection, and you’ll need to provide the
first month’s rent (pro-rated depending on move-in), and a two-month deposit.
Step 3: The last step
of the process is buying your home. Once you've moved in, you can buy the home at any time.
A few things
to keep in mind:
- You are required to rent for a minimum of one
year, but can move out after a one-year lease term without penalty
- You may renew your lease for a total of five
years but no more.
- The total move-in process can take up to two
months: This includes the time required for the program to buy the home on your
behalf, and inspect the home
- You must have an Experian credit score of 525 or
above
- The program does not provide you with a
mortgage, and makes no guarantees that you will be able to obtain a mortgage
If you think this program is a good fit for you, call Nate to talk more about this program. We’ve helped
hundreds of buyers find the right home, and we believe this is an excellent
program to get you into the home you love. Call us at 571-494-1245
or email Natejohnson@1245team.com
Written by Charity Corkey - 12:45 Team
