Rent-to-Own (RTO) programs are very specialized, so it is extremely important to work with professionals who are knowledgeable and experienced in performing them.
Rent to Own is when you (the tenant) has an Option to Purchase from the owner (the landlord) for a pre-determined purchase price during a specific time of the term (usually 3 years).
If you are someone who would like to own a home sooner than the banks are saying you cant; RENTER2OWNER can help! Our team has executed many RTO programs with success, so you are in good hands!
Renting-to-Own is a unique and effective method for home ownership designed for people who do not qualify for traditional mortgage lending, for any number of reasons. Some of these reasons include:
- Bruised credit
- No credit
- Too small of a down payment
- Past bankruptcy
- Self-employed
- Divorced
- Low reported income
- Identity theft
- New to the country
These are all common reasons for lenders to decline a mortgage… but these reasons do not have to delay home ownership!
RTO allows people to get into a home of their choice, quickly and effectively. By becoming Tenant-Buyers, they are able to pick a house in their price range that they love and move into it immediately. During a RTO term (typically 2-3 years), a portion of monthly rent payments are credited toward the purchase down payment at the end of the term; PLUS the Tenant-Buyer receives financial coaching from our dedicated Credit Specialist to ensure they qualify for their own mortgage at the end of the term.
Below is a brief, 10-step overview of how a successful Rent-to-Own program helps people move into their long-term home NOW, while becoming “mortgage ready”:
- R20 is introduced to a potential Tenant-Buyer through a network of financial professionals (mortgage broker, financial planner, accountant, etc.), who understands that traditional mortgages are temporarily out of reach for this individual.
- Prospective Tenant-Buyers are interviewed and qualified by R20 to ensure that, after a 2-3 RTO program they are able to reach the point where they can qualify for a traditional mortgage.
- Upon pre-approval, R20 completes a financial analysis on the Tenant-Buyer, to determine the possibilities and limitations of a RTO term.
- The Tenant-Buyer then works with one of R20’s knowledgeable and experienced RTO partners to find a home they deem desirable, within their pre-approved price range and within RTO property criteria.
- When a suitable home is found, the Tenant-Buyer and Realtor work to purchase the house from the seller. RTO team has final approval of the property’s purchase, based on criteria previously discussed with the Tenant-Buyer and Realtor.
- An offer is made to purchase the property in the Investors or Company’s name. We will finance the down payment, while conditions of purchase are cleared.
- The Tenant-Buyer pays a purchase option (down payment) and sign rental contracts with RTO team before moving into the home.
- Throughout the term, RTO team collects monthly rent from the Tenant-Buyers with a portion going toward their down payment at the end of the RTO term.
- Tenant-Buyers receive financial coaching from RTO team and Credit Specialist throughout the term to ensure they are on track to qualify for their own mortgage at the end of it, when they will officially purchase the house from us.
- At the conclusion of the term, the Tenant-Buyer has saved up enough down payment through rent credits and has qualified for a mortgage. They purchase the home at a price agreed upon at the start of the term. They are now home owners and it’s time to celebrate!
For Example:
You have minimum – 3% of purchase price as Non-Refundable Deposit (will be added towards your down payment)
Rent + Rent Credit – Will depend on market rents / your affordability (Rent credits will be added every month towards your down payment)
You will be responsible for:
o Maintenance
o Utilities
o Repairs, if any (upto $1,000 per Month)
We will take care of Taxes
Say the house is worth 100,000 at the present time and the appreciation in the area is 5%.
The sale price is set at beginning.
| 1st year | 2nd year | 3rd year | 4th year | 5th year |
| $ 105,000 | $ 110,250 | $ 115,762.50 | $ 121,550 | $ 127,628 |
You agreed to purchase this house in second year and value of property will be $ 110,250.
You paid initial deposit $3,000 when you move in and $335 rent credit per month. (in addition to your regular rent)
After 2 years you have $11,025 saving as your down payment with us. (3,000 deposits + $8,025 rent credit ($335 x 24 months)).
You have to make sure you follow our credit specialist’s advice, so after 1-3 years you are able to qualify for the mortgage.
Our Renter2Owner program help you build up your saving (down payment) and rebuild your credit score.
Please CONTACT US to discuss the opportunities available to you!