Rent to own is simply a lease agreement giving the buyer an option to buy the property at a set price during the lease period (usually 1-3 years). The buyer can buy the property any time within the lease period but does not have to buy. Usually option money is paid at move in and monthly rent credits are given towards the purchase price.
This strategy benefits the sellers by filling their vacant homes and relieving them from two mortgage payments quickly or it could be relief from a mortgage payment that is unaffordable now. With abundant competition, offering a lease option to the buyer gives you an advantage to get your home sold very quickly.
It benefits buyers who can not qualify by putting them in their home NOW and giving them a year or two to get financing. A combination of credit repair if needed and rent credits over a year to build up the down payment can be a tremendous help in qualifying for a loan. A great deal for everyone involved!
Send an email request for the simple application, or call Mitza at (760) 443-2764 directly. You can also call our 24/7 recorded hotline for information at (760) 688-0708. (photo for advertising purposeses only)
What is the benefit for the seller? There are several benefits. First, it is a quick transaction because there are no banks involved at move in. Second, the buyer can pay your mortgage payment or at least help with the majority of it if your mortgage payment is higher than market rent. Third, it gives you an advantage over other sellers because it is less money up front to lease than to buy. Many times you will get your asking price or slightly higher rent because you are giving good terms and rent credits.
What about the maintenance? The buyer will handle the day to day maintenance because they plan on buying the property. You will find the tenants will have a buyer's mentality not a renter's. Many times they will even improve your property because soon it will be theirs.
What if the tenants don't buy or pay the rent? The tenants will be screened for their ability to pay the rent and ability to get financing within the lease period. No one can foretell the future but the seller can see the buyer's credentials and approve the buyer.
Buyer’s Frequently asked questions:
What is the benefit for the buyer? This type of purchase gives the buyer time to work on whatever his obsticles may be to getting financing. We have credit repair referrals if needed. Second, if you don't have 20% for a down for a loan, it gives you a chance to move into the home you want now with less money (3-5%) and accumulate rent credits towards the down. The option money and rent credits go towards your down. Third, it gives you a chance to try before you buy.
What if I can't get a loan in a year? To start it will be important to make a plan with your lender as to what will be needed. Consult with a credit repair service and see if it is possible. Budget for the down payment. The future is unknown but sound planning and setting obtainable goals is what is needed. Asking the seller for an extension is a possibility.
What if my circumstances change and I don't want to buy? You don't have to buy, but you will forfeit your option money.
Send an email request for the simple application, or call Mitza at (760) 443-2764 directly. You can also call our 24/7 recorded hotline for information at (760) 688-0708. (photo for advertising purposeses only) 
