How Does Rent-To-Own Homes Work

In this guide, we will cover how rent-to-own homes work. We will detail rent-to-own homes and why rent-to-homes are becoming increasingly popular among first-time homebuyers. Are you Tired of your rents increasing with no notice and with ridiculous increases?

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What Are Rent-To-Own Homes?

What if I could tell you that you could enjoy the benefit of living in your own home, but you either have yet to consider this option for yourself, OR you want to but need some time to make the dream of home ownership possible?

The team at Non-QM Mortgage Brokers are experts in helping borrowers with credit scores down to 500 FICO, homebuyers with no income documentation, no-doc mortgages, 1099 only mortgages, stated-income loans, asset depletion mortgages, bank statement loans for self-employed borrowers, and government and conventional loans with no overlays.

Let me introduce you to an amazing solution! I can offer you a system where you pick out an eligible home listed for Sale (not for rent – For Sale), help you purchase the home for your benefit, and lease it back to you until you are ready to buy it.

How Long Can You Be Renting on Rent-To-Own Homes

You could rent for five years (three years in Texas**) in a home that YOU pick from the “live homes for sale on the MLS” and not a “Rental” house. Your rental rate increases are limited to a 3.75% gain MAX every year for five years** (Texas is excluded). Ethel Matthews, a dually licensed loan officer, and realtor, said the following:

People who plan on renting rent-to-own homes generally work with a loan officer. Many rent-to-own buyers are already working with a loan officer. Most people need six to twelve months to get their credit and finances in order. Very rarely does rent-to-own homes go past 18 months.

You have the OPTION to purchase the home anytime after once in your rental with a pre-determined and agreed-upon price. What IF your deposit comes back to you at closing in the form of going towards your down payment or closing costs or…. This is the perfect option if you have become discouraged in the home-buying process due to a lack of acceptance of your offer.

Who Benefits From Rent-To-Own Homes

Rent-to-own homes benefit potential homebuyers who want to buy but are still determining the market stability. Another benefit of rent-to-own homes is for folks who are relocating and not sure of the exact location of their long-term desired area. Maria Garcia, a veteran real estate licensed in Florida, said the following:

Rent-to-own homes benefit people wanting to buy, but interest rates have set back your desired purchase price range.

Homebuyers who benefit from rent-to-own homes are getting things ready to buy a home, such as working on saving for a down payment.

Rent-To-Homes Perfect For Dog Lovers

Are they renting and tired of getting less than high-quality homes? This program is PERFECT for them. Do you own a restricted dog breed? Maybe a true lover of pit bulls? This opportunity is perfect for you! Dale Elenteny of Non-QM Mortgage Brokers said the following:

If you live in a rental, the chances are that you need permission to get a dog or cat. If the permission is granted, the landlord will ask for a higher rent. You will be restricted on the size of dog you can adopt. Homeowners do not have such restrictions.

There are NO breed restrictions in the program. (check HOA for any possible restrictions affecting a particular home). How many pets do you have? If you have 1, 2, or 3 pets, you are a great fit for this program as long as they collectively weigh 180 lbs or less.

What Type of Buyers Benefit From Rent-To-Own Homes

Are you ready, willing, and able to buy your own home need time to boost your credit scores? Are you expecting to receive a large bonus soon and use that for your down payment instead of your savings? Are you ready, willing, and able to buy your own home but don’t quite qualify for a mortgage?

Rent-to-own homes benefit homebuyers who have the down payment and are able to afford the home purchase but need time to boost their credit score and rebuild their credit.

Is that promotion you are about to receive putting your purchase price in the range of that neighborhood you have been dreaming about? Or, that home you want to buy is a closer commute to work or the airport? Lastly, are you ready, willing, and able to buy your home? Will the income tax return you expect in a few months make it financially easier to pay for any new furniture or moving expenses on the wish list? Will having some time help you pay to paint the walls in your new home in your favorite color or that new style you just saw on a home remodeling show? All of the above reasons benefit buyers of rent-to-own homes.

Who Offers Rent-To-Own Homes?

There are several types of rent-to-own home programs. It can be rent-to-homes offered by private home sellers or backed by a large national company. We can help people interested in rent-to-own homes connect with a well-established company with a national reputation. Ronda Butts of Non-QM Mortgage Brokers and a licensed Florida real estate expert of rent-to-own homes said the following:

You will be dealing with not that little person trying to scam you out of thousands of dollars with a promise of “rent-to-own homes.”

It is a true and reputable lease purchase program that allows people to rent until they can purchase at the most beneficial time for the renter/future homeowner.

How Does The Rent-To-Own Homes Buying Process Work

We are happy and proud to present this program to those who believe that having a roof over your head that helps you as a priority is way more beneficial than lining the pockets of that landlord or “slumlord.” Alaina Phillips, a dually licensed realtor and loan officer at Non-QM Mortgage Brokers, explains about the rent-to-own homes buying process:

Many people buying rent-to-own homes are folks who are able to afford a home but need time to work on their credit for a mortgage or need time for a down payment.

This program allows you to be in control rather than the homeowner facing foreclosure or financial hardship who can’t take care of the home as it should be. With this program, you have a reputable company helping and an existing system with people like us to help you.

Getting Started To Get Pre-Approved For Rent-To-Own Homes

We are ready, willing, and able to help you with your home needs, whether to rent for a short while or jump and buy your home now. Either way, we have options to help you find the right option.

Non-QM Mortgage Brokers have a national reputation for being able to approve and fund mortgage loans other mortgage companies cannot do.

If you have any questions on rent-to-own homes or are ready to get started in the homebuying process on rent-to-own homes, please contact us at non-QM Mortgage Brokers at gcho@gustancho.com or call us at 262-627-1965. Text us for a faster response. The team at Non-QM Mortgage Brokers is available seven days a week, evenings, weekends, and holidays.