Frequently Asked Questions About Rent2Own
How Does a Rent2own Program Work?
– TREP will rent you the home of your choice (you and our Realtor assist you in finding a suitable home) and grant you the exclusive right to purchase it at a predetermined (1-10 years) date.
– This will give you time to save up for a larger down payment and also time to clean up your past credit issues
– We are obligated to sell to you, however you are not obligated to buy the Rent 2own property. It is your choice.
– A portion of your monthly Rent2own payment and 100% of your initial Rent2Own deposit is credited towards the purchase price of the home.
– The purchase price of the property is established and agreed upon in advance. The benefit is that the Rent2own property will more than likely appreciate in value considerably by the time you purchase it at the lower price thereby giving you equity before you even own the house.
– Our goal in a Rent2own is to help you qualify for a mortgage so you can own your own home as soon as possible. A true win-win scenario.
– The actual amount required will depend on the property, location and the amount of your monthly Rent2own payments.
– It is usually around 3-5% of the value of the property. This will be credited 100% to you to be applied towards the down payment of the property
Can I Use Borrowed Funds for my Initial Rent2own Payment?
– Absolutely! Yes. Unlike most lending institutions, we accept borrowed funds. If you have a close friend or relative willing to lend you money, you can use that for your Rent 2own home.
Self-Employed /Commission-Based – Do I Still Qualify?
– Yes, we help many people in this situation. We are very flexible and take into account that your income may not always be guaranteed and may vary.
What if My Credit is Horrible – Do I Still Qualify?
– Yes you do, we determine this on a case by case basis. We believe in providing everybody with the opportunity to own their own home. What we ask is that you are completely honest about yourself when you provide us with your credit information so we can really help you better in determining what is best the best course of action for you.
– Yes on a case by case basis however the tenants must be screened and approved by TREP. You can place a tenant into the property if you wish. Please note: You will also be responsible for all maintenance, repairs and damages that may occur.
What about Property Taxes, Building Insurance and Condo Fees?
– We pay for this. We will pay for the property taxes, building insurance and condo fees to ensure they are always paid in a timely matter as this protects your investment.
– You are responsible for the maintaining of the property as you will more than likely become the homeowner. Therefore, you will be the direct beneficiary of any and all improvements, as they will increase the value of your home.
– No it is predetermined and agreed upon in advance to protect everybody’s interests.
– No, however there are options available to you. For example, the monthly rent can be reduced by increasing your initial payments.
Can I Choose any Home I Want for the Rent2own program?
Yes! However, the property must meet our parameters of being of sound
construction and being located in areas that are appreciating in value. We
protect you by making certain the home will be a good fit for you and is in a
safe and secure area.
– Your monthly rental costs are roughly the same as you would pay for rent in a home. So why not choose home ownership and pay yourself first versus paying a landlord?
– We will work closely with you throughout the process to help you find an appropriate house that you can afford and enjoy.
What Happens if I am Unable to Make my Monthly Rent2own Payment?
– We require that you honour all your obligations under the terms and conditions of our Rent2own contract. You will be responsible to pay the correct amount on time. If you fail to do so, you will be considered to be in default under the terms and conditions of theRent2own contract.
– There are options. If you need more time we can extend the lease longer or
we can help you secure financing, perhaps we might even finance you.
– You can choose to walk away and owe us no further money. However the credits you have accumulated towards your future down payment are non-refundable.
– Quickly, usually within a few weeks!
What IS My Next Step?
- Stop paying rent forever
- Owning vs renting – the big debate
- Credit Score high and keep interest low – the ins and out of credit scoring
- Should you own your home or rent?