Is a Rent-to-Own Right for You?

Are you a homeowner who needs to refinance past 80% of the value due to financial challenges?  Are you wanting to purchase a home but don’t have sufficient down payment or have credit issues?  You may want to consider a rent-to-own situation.

For the homeowner, refinancing past 80% is a thing of the past (except in a couple of very particular situations, one being a marital split).  But in a rent-to-own you could get up to 90% or more.  You would enter into a contract with an investor who would purchase your home and agree to sell it back to you at an agreed upon price on an agreed upon date.  You would continue living in the house and paying market rents and often a “bonus” amount which would be applied as a credit towards the future purchase (like a down payment).

This would give you the capital to pay off your creditors, including your lender if you’re in the midst of a power of sale (subject to sufficient equity), and the time to improve your credit so you can qualify for a mortgage when the contract is up.

If you’re a want-to-be-homeowner, this program allows you to be in your dream home much sooner than expected.  Like the homeowner you would have a contract with the investor which would give you the time you need to accumulate your down payment or improve your credit.  And of course I would work with you to get your credit to a point to meet the lender requirements.

If you have any questions or would like information about rent-to-owns, contact me today.

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