Below are the most commonly asked questions with the answers.
Q: What is a Rent to Own home?
A: A Rent to Own home is an opportunity for those that no longer want to rent and would rather own a home but unfortunately can not qualify for financing at this point in time. With a small down payment this allows you to lock in terms of home purchase for a set amount of time going forward (generally anywhere from 6 months to 4 years). Within that time period you simply do what you need to do and qualify for a mortgage. However, you get to immediately move into the home and have a home you can call your own today!
Q: What if I don’t see a home I want on your site?
A: Quite frankly that is expected. We have no reason to and do not carry a large inventory. But rather work with you directly when you are within 60 days of needing to move and then get the specific home and terms that meet your criteria.
Q: What if I just want to rent one of your homes?
A: We specialize in Rent to Own and that is what we focus on and no homes on this site are available as straight rentals. However, we can refer you to someone that has access to all of the rental homes in Phoenix that are available and she can help you get into a straight rental home if that is what you desire.
Q: What if I have a recent short sale, foreclosure, or bankruptcy on my credit?
A: You will just simply need to explain the situation that created it and as long as not just being a ‘deadbeat’ then should be no problem. Over 90% of everyone we have recently worked with have had one or more of these unfortunate situations.
Q: How much down payment do I need?
A: That depends upon your specific situation. There is a difference between someone that has a few late payments and will be able to finance in 6 months versus someone who has 7 foreclosures and repossessions in the last 2 months and needs 4 years to qualify. However, there is a 3% minimum requirement and goes up from there depending upon situation.
Q: Is there a monthly credit?
A: Every situation is different and this depends upon whether or not you want one. Quite frankly most of the time you are better off without one. I know it sounds nice and all but most of time it is just a rip off and they have just simply added that credit amount to your jacked up monthly payment. For most it is better to keep the monthly payment as low as possible but again that is up to you.
Q: What are your fees?
A: Our fees will vary depending upon the situation (are we investor or is another investor involved or no investor involved) and is built into the deal. Ask us about your specific situation and we can tell you the cost in advance.
Q: How is the price of the home established?
A: Every deal is different and can depend upon the home, area, and investor involved. However, most of the time it is determined by todays fair market value and that price is locked in for the term of your Rent to Own.
Q: How long is the Rent to Own term?
A: That depends upon and is tailored to your situation. Our goal is to have you actually own the home. Therefore, we will ensure that you have the right length of term in advance to ensure you proper time to actually qualify and finance the home. Terms can range in length from 6 months to 4 years. Find out how long of a term you need by contacting us.
Q: Do I have to qualify for a Rent to Own home?
A: No and Yes. No you do not need to qualify as you do for a mortgage where you have to basically give blood from your first born. However, yes you need a certain amount for down payment and you will need to be reviewed to determine how long of a term you will need. It is a very simple process and takes less then 15 minutes and can be done over the phone.
Q: Who pays the taxes and insurance?
A: Until you qualify for financing and create a mortgage you will not be responsible for paying taxes and insurance directly. These costs are already factored into your monthly payment amount determined in advance.
Q: What is the total move in cost?
A: The total amount would be your down payment, our fee (if needed and/or not already built into down payment), first months rent, money for professional inspection (approx $400- HIGHLY recommended but not required), and set-up fee for escrow account (approx $100) to protect yourself.
Q: What are the negatives to Rent to Own a home?
A: Although there are a lot of tremendous benefits, Rent to Own is NOT for everyone. You should NOT be involved with a Rent to Own unless you actually have the intention and game plan to finance the home. Otherwise you will lose your down payment and will in essence be renting without the benefits of renting (will be responsbile for all repairs). Unfortunately, most Rent to Owns accross the country are designed for you to fail. The investor wants the extra down payment money, have you pay top rent and take care of all the repairs, and then NOT have you quailify to purchase so he can do it all over again with someone else. So do NOT enter into a Rent to Own unless you are working with someone that truly wants you to own the home. You know this if they are helping you with a game plan to qualify for a mortgage in the future!
Q: Do you work with real estate agents?
A: Yes- we are real estate agent friendly. Ask us how you can work with us.
Q: Do you work with other investors?
A: Absolutely! If you are an investor that would like to take advantage of a great opportunity, help others, and at the same time get a nice ROI then just contact us.
Q: Can you help me outside of Phoenix?
A: At this time we only focus on Rent to Owns in Phoenix.
Q: Why should I use you over others?
A: Most of our competition are National companies that work all 50 states and are just simply slamming deals together. It doesn’t matter one way or the other to them if you actually end up owning the home. Quite frankly, most of the time they would prefer you didn’t. We are local investors and our goal is to ensure you actually own the home. We do NOT want the home back and is why we are selective with who we work with. We only work with those that have a storng desire to eventually be able to finance the home with a mortgage and we help you do it!
Q: Who is responsible for repairs on the home?
A: It is your home so you will be responsible for all and any repairs on the home once you move in.
Q: How long does this process take?
A: Overall it is a very short process and should not take any longer then 60 days from when we get your specific home criteria to when you can move into your new home. We have done them as quickly as 10 days!
Q: Do you allow pets in the Rent to Own homes?
A: Yes- it is your home.
Q: What is the difference between renting and Rent to Own?
A: There are plenty of differences. When renting you are temporarally living in someones elses home and must follow their rules while you pay their mortage payment for them. With a rent to own it is your own and you have the ability to create your own equity.
Q: How is the monthly payment determined?
A: It is determined in advance and will be at the top end of the rental rates in that area. The goal is to have your monthly payment very similiar to what your ultimate mortgage payment will be so there is a smooth transition.
Q: What if I ultimately decide NOT to buy the home?
A: That is your decision but you will lose all of your down payment money and receive no refund/credit for any payments.
Q: I have a home to sell, can you help me sell it Rent to Own?
A: Absolutely! Right now in this market this is the best way to sell a home without having to severely discount it. Not to mention the savings in closings costs! We have helped home owners easily profit an extra $10,000-$30,000 on the sale of their home when compared to selling it by traditional means. This does not even include the extra tax benefits!
Q: Can I paint and decorate the home?
A: It is your home. However, you will still need permission for any major remodeling.
Q: What if I don’t have enough down payment?
A: Then sorry we can not help you get into a rent to own home at this time. You will need to save more money or just do a straight rental for now.
Q: Who gets the tax benefits of the home?
A: The individual that is ultimately paying the actual mortgage to the bank receives the tax benefits. You will receive them once you finance the home.