The Good the Bad and the Ugly
Moving into the new year may cause for exploration. We all know that so many things happen by Spring, that you may need alternative options when it comes to your new residence. Many buyers are not aware of the rent-to-own option or having the ability to handpick your home with the option to purchase at the end of your lease.
As your REALTOR, allow me to shed some light on these possibilities. There are some pros and cons to utilizing these programs, so the benefits will be specific to your situation.
Get with me for a consultation and I will be glad to go through the options with you if rent-to-own is on your radar. Let’s dive in!
What are rent-to-own programs?
Rent-to-own programs allow potential buyers additional opportunity to purchase when the scenario gets tight. Maybe you achieved new employment and you need to move ASAP but you don’t want to commit to a mortgage at such short notice. Maybe, you don’t have the money for a down payment right now and you need time to save up money or maybe you simply need a savings plan to work toward a down payment. The list goes on, but having the option to rent-to-own could save you time and money.
How do rent-to-own programs work?
I personally have experience with two programs and I will briefly summarize both. However, there’s so much to know when it comes to these programs, I recommend doing your due diligence and going on the websites yourself to do your homework.
Home Partners of America
First, I’ll start with Home Partners of America. Home Partners is NOT a rent-to-own program. Home Partners is a “rent with an option to purchase” program. -You would go through the home search process, just as you would if you were purchasing the home yourself.
The home you find must be within proper qualification based on Home Partners policy and then Home Partners would make an offer on the home. (HP must negotiate and win the offer)
You’d then lease the home from HP, pay a rent at market rate and at the end of the lease, you could buy the home, or terminate the lease, or extend the lease. However, your monthly rent payment does not go toward your future down payment if you choose to purchase at the end of your lease. It's simply your lease.
There are benefits to using HomePartners and I am glad to say I have helped several buyers using this program. But you must make sure it makes sense for YOUR situation. It may not be the best choice for everyone. Just remember to weigh out your options with your REALTOR.
Divvy Homes
Next, Divvy Homes. Divvy is a rent-to-own program where part of your monthly rental payment will go toward the down payment of the home at the end of the lease. Similar to Home Partners, you would go through the home search process, the same way a home buyer would. Search for the home, tour, and submit an offer up for negotiation.
The offer and negotiation process is also similar to a traditional transaction so be ready to experience competing offers and negotiating. The benefit here is that you don’t have to do too much work to put money away, because your down payment savings is built into your monthly rental payments. This is perfect for someone who needs help with a savings plan.
Long story short
The qualifications for these programs vary, so I recommend doing your due diligence and going on the site yourself to do your homework. But if you are interested in getting started with a REALTOR, and you want someone to do the work for you, professionally, book a free consultation with me.
What you get from me
Give me a call if you are ready to get started or even have the conversation of what it takes to buy a home in the future.
I will:
Host a consultation of your needs
Introduce you to the ins and outs of the programs
Walk you completely through application process
Home search - Open doors for you
Strategically submit offers
Negotiation - with sellers on behalf of the programs
Make sure you get the keys to your new home!
Click the link below to get started!
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