Favored Property Solutions

1.  Are rent to own homes real?

Yes, rent to own homes are a real opportunity for people who need help with improving their credit or time to save up a down payment. 

 

2. Do realtors help find rent to own homes?

Yes, a realtor can help to find a rent to own home, but it is unlikely you will find to assist you.  Realtors make a very little commission from rent to own homes. They basically have to make a commission from your option fee because the sale of the home is in the future. Additionally, many buyers decide not to buy rent to own homes, leaving the realtor without commission at the end.

 

3. Who’s responsible for the utilities?

Future homeowner (tenant) will be responsible for paying all utilities.

 

4. Who’s responsible for home repairs?

Future homeowner (tenant) will be responsible for all home repairs. We can assist you with finding contractors if needed.

 

5. How do you lease to buy a house?

Lease to buy a house, first, you look for a seller interested in utilizing rent to own to sell the property. To initiate your lease to buy or lease-option, you pay an option fee to retain the right to purchase the home. You pay monthly rent and premium payments to the seller (only if premium option is chosen). If you purchase the home, the money you have paid as an option fee and premium payments go toward your down payment on the home. If you decide not to purchase the home, you simply walk away, but all money is nonrefundable if home is not purchased.

 

6.  How does a lease option to purchase work?

Lease option to purchase works when a tenant leases a home from a person who is looking to sell his or her home. Therefore, the tenant is leasing the property and has the option to purchase it. You retain this option by paying an option payment at the beginning of the lease and paying premium payments each month. To initiate a lease option to purchase, you, first, sign a contract with the seller. You, then, pay the option fee, which will be about 5 percent of the purchase price of the home. The option fee gives you the option to purchase the home you are renting at any point throughout the lease.

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7. How does rent to own work with bad credit?

The credit program is designed to help future homeowners establish good credit to receive a mortgage from a lender before the lease is up.

 

.8. Is rent to own more expensive than renting?

Normally rent to own monthly payments are higher than regular rental payments because you are paying additional money to build equity in your home while renting. The additional money will be used towards your down payment once you secure a mortgage loan for the property. We have different options for rent to own payments.