Q: Is your rent to own program really “free”?

A: Absolutely! There is no down payment. We only require a 1 month security deposit which you would find on any standard lease contract.

Q: How long does it take to “own” from paying my rent?

A: The program DOES NOT work that way. You will eventually have to qualify for you own mortgage to buy the house. Our program allows you to rent the house you want to buy, and then assists you to become a qualified buyer. While you are renting, we will credit you 20% to the purchase price.

Q: If I choose the new home program, does this mean I can just pick any home on the market?

A: No! It has to be a house that we can “buy right”. The investor buying your home is not doing it to be nice. They are doing it to make money. We have to get the house at a discount so that you can buy a house at a fair price. We do this by buying builders’ new home excess inventory, foreclosures, HUD, and VA homes.

Q: How do I know I am getting a fair purchase price?

A: You will have signed a Buyer’s Agency agreement with us, which legally binds us to serve your best interests. Making you pay too much for a house would not be in your best interest, and we could be held responsible by law. 

Q: When I sign a lease option, can I be forced to buy a home?

A: No, no one can force you to buy anything. This is just an option to purchase. If it turns out you don’t want to buy a home, you don’t have to. It will be like you have just been renting. You will not incur any penalty.

Q: Is the option price negotiable?

A: Sure. When we set the option price, we project what we feel a fair market value will be in 2 years. The majority of the time, the option price will be less than the market value in 2 years. On occasion it is possible for our projection to be over market value. If this happens we will be the first to let you know and help you make an appropriate “counteroffer.” Setting an option price is a benefit to you the buyer. It gives you a set price which cannot be raised for the term of the contract. The price of course can always be lowered.

Q: What happens if I am not ready to buy in 2 years? Will I lose the option and my rent credits?

A: No, not at all. We understand that it may take some people 3-4 years to become a qualified buyer. If at the end of your 2 year lease option you are not ready to buy, we will simply renegotiate a new 2 year lease option. All rent credits earned will still be applied towards the purchase price of your home.

Q: How much of my rent goes towards my “rent credit’?|

A: Generally about 20%. Your rent is 120% of the monthly cost of the home. We take the remaining 20% and apply it towards the purchase price.. This formula is used to help you qualify for a home. When the mortgage company sees you have been making steady monthly payments greater than the amount you need for a loan, that is a big plus in their eyes! You have proven that you can pay 120% of the cost.. so of course you should be able to pay 100% right? 

Q: I’ve seen some companies offer 25-50% rent credits. Can you do this?

A: No, and you don’t want to do this either! Anything over 20% should make you very cautious. Chances are they have inflated the price of the house, or are overcharging you in rent. You don’t want either of these things to happen. It’s just not possible to give you that much credit AND a good deal on a home. Large rent credits are also a red flag to mortgage companies. They are usually a sign of some sort of fraud, and accredited mortgage companies WILL NOT accept them.