Our Rent-To-Own program makes sense for people that want to establish a longterm home but aren’t able to get a loan to buy a house. We are happy to discuss this process with you on the phone if necessary.
Simply put you are renting the house on a lease until you are able to get a loan and offically buy it. Our paperwork gives you an exclusive right to buy the house for 10 years. That means as long as you maintain the terms of the lease we can’t sell the house to anyone else. This creates a stable place for you to raise a family.
Key Points
- When you move in there are two documents: the lease (one year then automatically becomes month-to-month) and the option to purchase (which sets the purchase price you will pay when you are ready to buy).
- At move-in, we collect 1st months rent, a $500 security deposit, and a $3400 option fee (with the option fee you are purchasing the “option” to buy the house at a set price in the future, basically calling “dibs” for 10 years).
- If you stop paying on the lease, you can be evicted (a bank would also move you out if you stop paying).
- Rent can increase each year if necessary to maintain fair market rent. None of the monthly rent is credited toward purchasing the house.
- We agree to the purchase price you will eventually pay on the day you move in. However, since you are not buying the house “today” the price is not today’s price, it is a future price. The future price is based on historic appreciation for 7 years. For example, a house worth $160,000 today would have a future price of about $199,000. Since we are only using 7 years of appreciation, in years 8, 9, and 10 the house should be worth more than the agreed upon purchase price.
We allow you to live in the home much like a bank would:
- We allow pets with no additonal fees
- We allow smoking (but don’t recommend it indoors to preserve value)
- We allow you to make improvements/changes to the propery
- You are responsible for most repairs/maintenance
What if you decide you don’t want to buy the house?
- No problem, you can leave without the hassle or costs of having to sell
- If the house is in good shape and left broom clean you will get your $500 security deposit back
- You will not get the $3400 option fee back or any credit for any changes/improvements to the house