How It works

We aren’t bankers or real estate agents that sell other people’s homes. We have either a legal equitable interest in the property or we are the property owners. We don’t have to apply the typical credit criteria, debt ratio, or income verification. We can design the financing arrangements to suit your situation, because we own the homes. We can be very creative with financing and structure it to fit your needs.

Simple Steps to Close!

Step 1: Find a subject property

First, we work with you to find the right subject property, and through our general knowledge of market and area trends.

Step 2: Negotiate with the seller

When you rent to own, you won’t be writing an offer that the seller accepts like you would with a regular sale. Instead, this looks more like a rental contract with additional stipulations, so both parties will want to make sure you agree on what it says. We have the agreements and can work with both parties to customize for your requirements.

Step 3: Order the inspection

As a renter, you typically wouldn’t do any formal inspection as part of your contract. But as a rent-to-owner, you really want to know what you’re getting into, and a home inspection is the best way to do that.

Step 4: Pay the option fee

At this stage you’ll pay your option fee, also called a premium payment or option consideration. This is an upfront payment that may be credited toward your down payment when you purchase the home.

Step 5: Move in and pay rent

Sure, it’s always important as a tenant to pay your rent on time. But when you’re renting to own, missing payments could kill your chance of ownership: In some cases, a late payment could void the rent-to-own contract. And if that happens, whatever you’ve paid toward the price of the home is typically lost, too.

Step 6: Work on your credit

If you’re renting to own so you’ll have better loan terms when you buy in a few years, start working on your credit in preparation. It could be a situation where your credit score is low, and it’s going to take you a year to fix it.

Step 7: Save for closing costs

Don’t forget about saving for your closing costs. You’ll have to pay them at the time of closing, and they can surprise you if you’re not prepared.

Step 8: Apply for a mortgage

At the end of your contract term, it’s time to apply for that mortgage you’ve been working toward by saving and improving your credit. When you apply, provide your lender with documentation for the premium payment and rent credits that you already made to the seller, in addition to the original purchase contract, the original appraisal (if you have one), and any inspections that were made during this time.

HOW IT WORKS