Is Rent-to-Own real?
Are you having trouble qualifying for a mortgage? Almost but not quite there, but sick of renting?
You do have options! Rent-to-own is a real possibility. Here are two programs I can help you navigate:
Home Partners of America
The Home Partners of America Lease Purchase Program is a solution to help get people into a home they love, even if they aren’t ready or able to purchase it right now. You have the ability to choose a qualifying home listed for sale and rent it from Home Partners with the right to purchase. The rent and right to purchase amounts are provided before signing the lease. If you decide you do not want to purchase the house, you can walk away at the end of your lease. To be eligible, you need a household income of at least $40,000, no open or unsatisfied bankruptcies, no recent evictions or unsatisfied rental collections, no recent felony convictions, and not be required to be on the sex offender registry.
Divvy
Divvy's rent-to-own model offers you a safe alternative form of financing so you can get into a home today today, even if you don't qualify for a mortgage or have money saved up for a down payment. You choose a home that is for sale and Divvy buys it on your behalf, with 2% due upfront. Then you rent it from Divvy with monthly payments that are divided between rent and a home savings account---so you are saving automatically for your future down payment! You can buy the home at any point during your 3-year lease using those savings as a down payment for a mortgage. If you decide not to buy the home at the end of your lease, you can walk away with your savings minus a 2% re-listing fee. To qualify, you need a credit score of 550, $40,000 annual income, be employed or have a steady income, a maximum debt to income ratio of 50%, and no recent evictions or bankruptcy filings.
I always recommend pursuing a regular mortgage first, especially if you are eligible for down payment assistance, but these are legitimate options if the conventional route is not an option right now. If you’re curious, give me a call and we can go over your options.