Rent to Own Option
On some of our houses, we offer a Rent to Own Option. Please ask if the home you are interested in has this option available.
If you rent a home with the Rent to Own Option, you can get established in the house and the neighborhood before you decide to buy the house. It gives you time to correct any problems with your credit. This helps you buy a house much easier.
This option gives you an opportunity to earn monthly RENT CREDITS to decrease the price of the home, save up for your down payment or to apply monies to closing costs. Sometimes you may qualify for a mortgage loan, but coming up with enough cash for a down payment or closing costs is the obstacle that prevents you from being able to buy your own home.
Here's how our program works:
1. We agree on a sales price for the house. The sales price is determined by a market review of the sales of homes in the immediate neighborhood at the time of the initial rental. Once the price is established, you are protected from any increase in the price over the term of your lease.
2. You pay a non-refundable deposit (rather than paying a security deposit), which will be applied to decrease the price of the house when you buy it. This deposit is 2% of the agreed upon price of the house.
(For example, if the house is worth $250,000 you would pay $5,000 as a deposit)
3 During your lease, 25% of your monthly rent will be credited to
a.) reduce the price of the house,
b.) apply to your down payment or
c.) apply to closing costs
(depending on what your mortgage company will allow).
We will only use rent credits for a MAXIMUM of one year.
(For example, if you are paying $1600 per month, your rent credit would be $400 per month, which is $4800)
4. You arrange financing through your own lender or mortgage company. Professional Property Management, LLC does not do any financing!!!
If you decide to buy the house before your lease expires, we will apply the deposit plus all accumulated monthly rent credits to your real estate contract.
In addition, your residential rental lease will become null and void as of the date of escrow closing.
This Rent to Own Option does not give you any cash refund for the monthly rent credits. No actual money is exchanged, but the earned rent credits will be subtracted from the sales price or applied to your required down payment. The credit is not valid unless you buy the house.
If you rent a home with the Rent to Own Option, you can get established in the house and the neighborhood before you decide to buy the house. It gives you time to correct any problems with your credit. This helps you buy a house much easier.
This option gives you an opportunity to earn monthly RENT CREDITS to decrease the price of the home, save up for your down payment or to apply monies to closing costs. Sometimes you may qualify for a mortgage loan, but coming up with enough cash for a down payment or closing costs is the obstacle that prevents you from being able to buy your own home.
Here's how our program works:
1. We agree on a sales price for the house. The sales price is determined by a market review of the sales of homes in the immediate neighborhood at the time of the initial rental. Once the price is established, you are protected from any increase in the price over the term of your lease.
2. You pay a non-refundable deposit (rather than paying a security deposit), which will be applied to decrease the price of the house when you buy it. This deposit is 2% of the agreed upon price of the house.
(For example, if the house is worth $250,000 you would pay $5,000 as a deposit)
3 During your lease, 25% of your monthly rent will be credited to
a.) reduce the price of the house,
b.) apply to your down payment or
c.) apply to closing costs
(depending on what your mortgage company will allow).
We will only use rent credits for a MAXIMUM of one year.
(For example, if you are paying $1600 per month, your rent credit would be $400 per month, which is $4800)
4. You arrange financing through your own lender or mortgage company. Professional Property Management, LLC does not do any financing!!!
If you decide to buy the house before your lease expires, we will apply the deposit plus all accumulated monthly rent credits to your real estate contract.
In addition, your residential rental lease will become null and void as of the date of escrow closing.
This Rent to Own Option does not give you any cash refund for the monthly rent credits. No actual money is exchanged, but the earned rent credits will be subtracted from the sales price or applied to your required down payment. The credit is not valid unless you buy the house.