How does our Rent To Own Program Work?
How Does Our Rent to Own Program Work
It is simple: You move into your home today under a Purchase and Sale Agreement to be executed at a predetermined date at a predetermined price in the future.
During your Rent to Own Program Term, our team of experts will work with you to get you “Bank” ready before the end of the Rent to Own period. The term of your Rent to Own Program is set to provide you enough time to clean up past credit problems or improve on any aspect of your Credit Profile or increase your cash flow for a down payment required by current Mortgage Guidelines.
In addition to helping with your Financial Profile, we will help you save enough money during the Rent to Own Term, so you have the required Down Payment for your Future Mortgage. A portion of your monthly payment goes towards rent/lease, and up to 20% of your Monthly Payment goes into a Savings Component used towards the Final down Payment for your future mortgage.
This savings component is often referred to as Option Credits (Credit given to you towards your Down Payment when you exercise the option to buy your home). The total savings accumulated during the lease are added to your initial Down Payment to form your final down payment at the end.
With our Rent to Own program, you will know precisely what your Future Purchase Price, Down payment, and mortgage would be. This allows our team of experts to properly position you for a mortgage based on today’s lending guidelines.
How much of a down payment do I need?
The Down Payment required depends on your Credit Profile when you apply.
Remember, the only way a Rent to Own Program will be successful is if it ends with YOU getting a Mortgage. Therefore, we must ensure your Credit Profile and Down payment at the end of your Rent to Own Program is what the current mortgage guidelines demand. We do not make the Mortgage Qualification guidelines but must be guided by them to ensure successful Rent to Own campaigns.
The minimum Down payment is the greater of 3% or $ 10,000 Minimum*
We have a variety of options for funding your application. If you have 3% or $ 10,000 to start, there is an excellent chance we can help you get into your home “today.”
Please note that our team is an expert in Mortgage and Credit Improvement. If you have a low Credit Score, it does not mean you will be declined. If we can help you improve your Credit Score and Profile to bank standards by the end of the Rent to Own Program, we do not place much emphasis on where your credit score or profile is today. Again, we will work with you to get Bank/Mortgage ready!
If you have 3% or $10,000 and want to buy a home…Get Pre-Approved today!
Note: *Having the minimum Down payment Requirement does not mean you are automatically approved. The starting Down Payment may be subject to change.
Here is a summary of events that occur during the Rent to Own Program:
- You work with your own realtor or one of our referral Realtors to find the house you want to own in the future.
- You may also use our online home shopping tool – https://yourhomejourney.ca/
- You will fill out our easy online application form by using this link here – https://bit.ly/3eZuLln
- Our Underwriting department provided by Citadel Mortgages will analysis your application to ensure you can afford the Monthly Rent to Own Payment and that we can formulate a plan to get you into Home Ownership in the future. Basically, we make sure we can resolve the issues that make Banks say no
- Once we are confident you can exit our program, we will find your Lending Partner. Once your Funding Partner is located, we will draft the Contracts which contain the financing details of your Rent to Own Purchase Program an send you a Rent to Own Program offer for your consideration.
- You “must” take the paperwork for the Rent to own program to your lawyer to obtain Independent Legal Advice (ILA)…it is mandatory with our
- Once your lawyer has given the “green light,” you will need to sign and return the agreements to
- If you agree to the Rent to Own Program terms, we then ask you to send us back a signed copy of your acceptance along with supporting documents for our review.
- The Real Estate contracts are then signed between the Seller of the Property and your Funding Partner…remember…your Funding Partner will buy the house on your behalf, and you sign contracts to become the future Homeowner using our Rent to Own Program
- We close…you move in, and we start working on the “Exit Strategy” put in place before you were approved your Rent to Own Program