Can’t Qualify for a Loan? Move in now – Buy later
A rent-to-own, often called a lease/option, is a contract under which you rent/lease the home with a future option to buy, and it can be a brilliant choice for the family in need of just-that-little-extra-time to qualify for a loan. And with no guarantees in the real estate market, locking-in a purchase price will likely prove to be very advantageous.
The rent-to-own process
We will set a purchase price to the property, a payment, and the time frame within which you must obtain bank financing. A rent-to-own is not long term financing. You must qualify for a bank loan within 1 – 2 years. With you making payments on your lease, we will help you qualify for that bank loan.
Does any of my monthly payment go toward the purchase price?
In many cases, yes! You are building equity in your home while you rent. A portion of your payment will be deducted from final purchase price.
Is a down payment required?
YES. To have an option to buy, you must, by law, put money down toward the property, which goes toward the purchase price of the home. Your purchase price remains locked-in.
I have horrible credit. Can you help me?
Most likely, yes. Depending on how much you can afford as a down payment and just how bad your credit is, we may still be able to get you in a property. As you make your monthly rental payments you will be building your credit score. We can put you in touch with a Credit Repair Specialist who can assist you during this time as well.
Will there be a Bank involved?
There will be no bank involved during the Rent -To-Own period. When you go to exercise your Option to Purchase, you will apply for a bank loan at that time.
Check out http://lionsolutionsgroup.com/welcome/rent-to-own/ for more information