Q: What exactly is a rent to own(lease option) home?
A: A rent to own home is when you lease a home with the option to purchase it at any time during your contract period. The purchase price is negotiated and agreed upon by both the Tenant-Buyer and Landlord-Seller prior to moving in. 100% of your initial down payment or (option deposit) goes towards the down payment and/or purchase price of your home, in addition to any rent credits associated with the property. Essentially, by renting to own you are building equity each month as if you owned the home and not just wasting money on rent.
Q: What is rent credit and how does it work in my favor?
A: A rent credit is the portion of your monthly rent payment that is credited towards the purchase price of your home at the end of the transaction, should you exercise your option to purchase. For example, if you enter into a lease option (rent to own) agreement for 24 months, with a rent payment of $1200 monthly and a rent credit of $250 monthly, your rent credit would be $250 X 24 months totaling $6,000. The rent credit is applied towards the purchase price and/or down payment of your home should you exercise your option to purchase.
Q: Are rent credits refundable?
A: Rent credits are typically non-refundable. Keep in mind that any rent credit accrued only comes into play if you exercise your option to purchase the home. If you decide to not purchase the home, those credits are forfeited.
Q: What happens if I decide not to purchase the home?
A: One of the best features of a lease option (rent to own) agreement is that you have an exclusive right to purchase the home at the agreed upon purchase price, but you are not obligated to purchase the property. This means that you can walk away for any reason or no reason at all if you decided that purchasing was not right for you for some reason. If you decide to not purchase, your down payment (option deposit) and all rent credit accumulated will be forfeited.
Q: How long does the process take?
A: If you are interested in a home that we currently have in our inventory, we can have you in the property in as little as 3 days! If we do not currently have what you are looking for in our inventory, we can secure it within 48 - 72 hours of receiving your approved application. Keep in mind, we specialize in securing a home for you to meet your specific needs. With our unique program, finding the home of your dreams is actually the easy part. We have a large database of Sellers that have already expressed interest in working with buyers that are unable to qualify for mortgage financing. Utilizing our unique system, Leasing To Own has never been easier!
Q: How can I buy a home with bad credit?
A: The Venture Option Advantage Program was designed to get you into the home of your dreams today, and work on purchasing the home later…even with poor credit history. Your ability to make reasonable monthly payments and your desire to raise your credit scores to qualify for a Mortgage loan during your option period are what we are most interested in. Our strategic partners are in place to assist you every step of the way. We have partnered with the best credit experts to help you improve your credit scores to qualify for a Mortgage loan.
Q: How much of a down payment (option deposit) will I need to qualify?
A: You can reasonably expect to contribute 3-5% of the predetermined purchase price in addition to the first months rent at the time you move in. We have found that in most cases this amount is less than the required contribution if you purchase conventionally using Bank financing.
Q: Is my Option Deposit (Down Payment) refundable?
A: The option deposit is typically non-refundable, just as a down payment is non-refundable if you purchase a home conventionally using Bank financing. Your option deposit and all rent credit accumulated will be applied to the predetermined purchase price and/or closing cost if and when you exercise your option to purchase.
Q: Who is responsible for paying the property taxes and insurance during the Rent To Own Period?
A: The owner is responsible for paying the property taxes and insurance. You are responsible for paying the agreed upon monthly rent amount until you purchase the home.
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