Rent To Own Info

Rent-to-Own

What is Rent-to-Own?

Rent-to-own or lease option, has for many years, been a valuable way to buy and sell real estate. It is a way to start you on the road to purchasing a home.

Is Rent-to-Own Right For You?

Whatever your reason is that you cannot purchase a home directly and need a little more time, then Rent-to-Own may be right for you.Some of the reasons may be:

Tired of paying rent and want to purchase a home.
Maybe your credit, income situation or other factors will not allow you to qualify for a home mortgage right now.
Self-employed and unable to get a low-rate loan.
Budget can't afford the down payment.
Not enough time on the job.

Agreements Involved

Rental Agreement: The agreement, most familiar with renters, the agreement between the buyer and manager establishing the rent and security deposit and obligations of each party.

Option Agreement: This agreement gives the buyer the first right of refusal to purchase the property and how long the option is good for. It also provides for any rent credits to be applied.This option is non-refundable if the option is not exercised. However, it is applied to the purchase price when exercised.

Purchase Agreement: This agreement is for the purchase of the home when the option agreement is exercised and establishes the purchase price of the property.

Qualifications

There are (3) primary qualifications for the program:

Payment on Time: You MUST pay your rent on or BEFORE the due date as stated in the rental agreement (typically the 1st of the month) in order to receive any rent credit. This means it must be received by BVM Realty on or before the 1st. Any payment received after the due date will result in a 0% rent credit for that month (will not be building any equity), a late fee may apply, and you are in default of the rental agreement.

Maintenance is your responsibility. You are now renting to own and homeownership requires maintenance. This includes things like broken windows from stones or baseballs, clogged drains, peeling paint, broken appliances, burnt out bulbs, lawn maintenance etc. If any major repairs are required to ensure habitability, the owner remains responsible.

Option Consideration: Option Consideration is typically 2% to 5% of the purchase price of the home. It is a non-refundable payment, of which 100% is credited toward the purchase price, which binds the lease purchase contract.

How to get started

      1. Click Here to Download the application from on line or call us at 619.390.2492.
      2. BVM Realty will run your credit.
      3. Together you and BVM Realty will set out a program to put you into home ownership.
      4. Find property to suit your needs.
      5. Sign contracts.
      6. Enjoy the steps to homeownership.

For more information please contact Bill Hanenburg
at (619) 390.2456, bill@bvminc.com or bill.bvmrealty.com BRE 01848368