Frequently Asked Questions (FAQ)
What is rent-to-own? How does it work?
Do I need a down payment?
How much do I need?
What if I change my mind before the lease is up?
Do I have to buy the house at the end
of the lease term?
What if I miss a payment during the lease term?
What is rent-to-own? How does it work?
You rent a house from us, and a portion of your rent goes toward your down payment when it is time to buy the house.
It is similar to a car lease: You lease the car for 2 years, for example, and at the end of the lease, you decide whether to buy the car, or walk away.
This table gives you a general idea of how it works:
| House purchase price | $250,000 |
| Your deposit | $10,000 |
| Monthly rent credits add up to | $9,600 |
| Your net cost to buy the house at the end of the lease | $230,400 |
Do I need a down payment? How much do I need?
You don’t need a full down payment, but you will need to make a deposit before moving in. The amount you need depends on the value of the house you choose, but as with applying for a mortgage, more is better.
What if I have bad credit?
You will work with our mortgage broker. He will help you make a plan to repair your credit so that you can get a mortgage at the end of the lease term.
What if I change my mind before
the lease is up?
You are not obligated to buy the house at the end of the term, and you can move out at the end of the lease, just as you could in a standard rental agreement. You should know, however, that your deposit and monthly rent credits are non-refundable if you do not buy the house.
Do I have to buy the house at the end
of the lease term?
You have an option to purchase the house at the end of the lease term, but you are not obligated to buy it.
You should know, however, that your deposit and monthly rent credits are non-refundable if you do not buy the house.
What if I miss a payment during the lease term?
Before moving in, you will sign a contract promising to pay each month, just as you would with a standard lease. If you stop making payments, you are at risk of being evicted, and losing your deposit and monthly rent credits.
