RENT-TO-OWN FINANCING PROGRAM
1. Our Rent-to-Own Program is designed for Buyers who may not be able to qualify for conventional mortgage financing at this time. Our Financing Program has terms up to three years. We may extend the term beyond three years for an additional fee. It is the Buyer's
responsibility to take the necessary steps to improve their credit profile so they may qualify for long term mortgage financing when our financing expires.
2. We work with many Mortgage Brokers and Lenders and will assist our Buyer to obtain long term mortgage financing. We can help find lenders that will do "Re-finance Mortgages" instead of "Original Purchase Mortgages", which is far more advantageous to the Buyer. Your good payment record with us will be provided to your long term mortgage lender, thereby making it possible to qualify for a Re-finance Mortgage. This mortgage is based on the Appraised Value at the time of application and not the Purchase Price. So, if you are getting an 90% Loan-to-Value product; you will get 90% of the Appraised Value at the time of application, not the Purchase Price. It is possible for you to actually get cash back at closing, using this method.
3. The RENT-TO-OWN PROGRAM is designed for Buyers that can pay a minimum of $5,000 up front for the Down Payment plus the first Monthly Payment.
4. Each month that you pay the Monthly Payment on time, we will reduce the Purchase Price. The amount of the Monthly Purchase Price Credit will be based on the amount of your Down Payment.
$5,000 Down Payment / $200 Monthly Credit
$10,000 Down Payment / $300 Monthly Credit
$15,000 Down Payment / $400 Monthly Credit
$20,000 Down Payment / $500 Monthly Credit
Your Down Payment and Monthly Reductions will be applied to the Purchase Price.
5. The benefits of this program is a Renter/Buyer can:
a. lock in the price on a home for up to three years
b. receive the appreciation (price increase) on the property for the three years
c. build a payment track record that will allow them to get a re-finance
mortgage and possibly cash out
6. Please keep in mind, on most properties, all of the monthly payment is used to pay the mortgage interest on the property, taxes, and insurance. We do not make a profit on the monthly payment. When you get your own long term mortgage, you will find that in the first several years almost all of your monthly payment is applied to interest, taxes and insurance and very little is applied to principal. The Monthly Payments may be increased at a minimum of 5% at each Lease renewal date to pay for rising taxes and insurance.
7. A Standard Rental Lease Agreement is executed with an Option Agreement. When the Buyer secures a long term mortgage, a Sales Purchase Agreement is executed in accordance with the Option Agreement. These are separate documents. If the Buyer/Renter defaults on the Lease Agreement, it is a cross default on the Option Agreement and the down payment and any Monthly Credits are forfeited. If the Buyer/Renter defaults only on the Option Agreement, the Lease Agreement may remain in effect.
8. All monies paid for Down Payments are non-refundable. It is very important that the Buyer understands they must work towards preparing to obtain their own long term financing when our financing expires.
