Did you know that on average home owners are 26 times wealthier than renters? This sounds ridiculous doesn’t it? But it’s true! Just imagine if you owned a $150,000 house with 5% down ($7500) and house values increased by just 3%. In one year you would have paid down your mortgage by at least $1,731 and your home would have increased in value by $4,500. This would increase your family’s wealth by $6,231 (or 83.1%) in just one year. Compare this with the $0 you would get as a renter and it’s easy to see why owning your home is the easiest way to build a better future for you and your family.
The problem we see people facing more and more everyday is that banks have made it increasingly challenging for people who have blemished credit, newly or self employed, new to the country, going through a divorce or short on down payment to get approved for a mortgage.
Not only that, but every year prices go up faster than wages can keep up. This makes it extremely difficult to save for a down payment, never mind qualify for a mortgage. Right now it may seem like home ownership is unattainable for you, reserved only for those who have money, better credit or a better job.
Our Rent to Own program offers a creative solution to this problem. After filling out an application we assess your situation and determine the price range of homes your would qualify for. We then introduce you to our Re/Max realtors, and you begin shopping for a house YOU want.
Our monthly payments are designed to equal what you would pay in rent, as well as what you would need to be saving for a down payment.
This means there is really very little price difference between renting and saving to buy in a few years, and buying a home with us today through the Fair Home Buyers Rent to Own program. The main difference is you get to live in this home today (while you repair any credit issues you may have and/or while you save the money you need to qualify for a mortgage) instead of waiting a few years.
The quickest way to explain the process is that there are two agreements involved in Rent to Own.
The first is a Lease. This Agreement allows you to move into the home immediately. This lease is very similar to any lease a person might sign when renting a house or an apartment. With this said we do add a few things. For instance, you have the right to improve the house to look the way you want it. You can paint the kitchen or finish the basement. We want you to treat the home as if you own it now.
The second agreement is a Purchase Option. This gives you the right to purchase the property in a pre-determined time (2-5 years) for a set price. This agreement is not much different from the standard agreement you would sign if you were buying a home with a realtor. The main difference, as mentioned, is this is only an option to buy, but your not obligated to do so.
This gives you 2-5 years to address any issues that you need to take care of before you have to go to your bank to get a mortgage. Typical issues may include, but are not limited to, I need to get my divorce finalized, I need to get some things on my credit cleared up, I need to stabilize my job history, I need to establish some credit.
Don’t worry, unlike most Rent to Own companies we don’t just set you up in a house and then leave you to fend for yourselves. With the Fair Home Buyers program every client gets their own personal credit counselor who will keep in touch with you and help you rebuild your credit. This is an important part of our program to give you the capacity to complete your dream of home ownership.
The Fair Home Buyers Rent to Own program is easy to qualify for, even if your credit score is less than perfect. All you need is a good income (typically $40,000 +) and a minimal down payment (2-5%) of the purchase price of the home you want to buy. If you meet these requirements, the quickest way to get approved is to fill out the application form below. If you qualify we will contact you to discuss your application and get started on the path to home ownership.
Thanks so much for your interest in the Fair Home Buyers Rent to Own Program. We look forward to working with you and wish you all the best as you embark on your journey towards home ownership!!