There are many ways to purchase a rent to own home (lease with option to purchase).
Our team has had tremendous success helping potential buyers / tenants by teaming up with a financing partner that will
allow you to choose the home you want to rent to own from almost any home available for sale in the Denver market.
We have answered some of the most frequently asked questions about this program below. As always, please feel free to contact our team with any additional questions at 303-726-1874.
Do All Homes Qualify For The Rent-To-Own Program? ⤵
While the majority of homes listed on our website do qualify for our rent to own program, not all homes do.
We have made every attempt to identify the homes on our website that do qualify for the program, but we encourage you to call us for the full property requirements.
What are the benefits to buying a home with a lease option (rent to own)? ⤵
There are many reasons you may choose to utilize a rent to own program:
- Low Credit Scores: If your credit is too poor to qualify for a mortgage now, but you know that it will improve in the near future, then a rent to own option may be ideal for you.
- Recent Bankruptcy: Most mortgage programs will not approve you for a mortgage if you have had a bankruptcy in the past 2 years. You can use a rent to own program to find a home now that you will qualify to purchase in the future.
- Recent Career Change: Many mortgage programs don't like to see a recent change in your career. If you have recently changed industries or careers and can't qualify for a mortgage now, a rent to own program may be a great option for you.
How Does Rent To Own Compare With Mortgage Down Payment Assistance Programs? ⤵
How quickly can I move into a home using this program?⤵
Because of the freedom that this program offers (allowing you to choose the home you wish to rent), it typically takes between
3-4 weeks to find the home, conduct inspections and complete all necessary paperwork.
What is the minimum income necessary to enroll in this program? ⤵
Your combined annual household income must be at least $60,000.
Does any of my rent go towards the purchase price of the home? ⤵
Should you choose to purchase the home, your entire rental deposit may be applied to the purchase of the home.
In contrast to other "Rent To Own Programs," your monthly payment is not inflated to put a portion of your payment towards a potential purchase. In addition, should you choose not to purchase the home, your entire deposit will be returned to you less any damages.
What is the "down payment" required? ⤵
Because this is a lease option program (rent to own), you will not be making a "down payment." Rather, as you will be a tenant until you exercise the right to purchase the home, you will be making a rental deposit. The amount of that deposit will be equal to two months of rent.
What if I have had a felony or eviction? ⤵
If anyone in the household has
a past felony conviction or eviction, you will not be able to qualify for this program.
Program restrictions apply to anyone over the age of 18 living in the household.
Do I have to buy the home I choose to rent? What if I change my mind? ⤵
You are under no obligation to buy the home that you choose to rent. As this is a true "lease with option to purchase" program, the option to purchase completely yours. If your situation changes or the value of the home decreases, you may simply choose to not exercise the purchase option of your lease.
What is the maximum purchase price for a home using this program? ⤵
This program will work for homes priced up to $650,000 in the Denver Metro area, and homes priced up to $600,000 in the Colorado Springs metro area.
What is the minimum monthly rental amount? ⤵
The minimum rental amount for a home in this program is $1,500. Keep in mind that the housing market in the Denver Metro area is very competitive and we are finding that a minimum rental rate of $1,900 - $2,000 a month is more realistic.
What is the minimum credit score necessary to enroll in this program? ⤵
In order to qualify for this program, the average credit score for all members of the household 18 years and over must be 620.
Average Credit score is calculated as the average credit score of all household members who will contribute to rent, weighted by the amount of each household member’s income.
What if I have a bankruptcy? ⤵
As long as the bancruptcy has been discharged, you can still take advantage of this program. Many people in this situation have used this program to lock in today's pricing,
while you get qualified for a home loan.
Our household does not meet the necessary requirements. Can we use a co-signer? ⤵
This program does not allow the use of a co-signer. However, our team does have access to mortgage programs available that do allow a co-signer. Please feel free to call us to learn more about those programs and if you qualify.
I own another home and it has not sold. Can I still qualify for this program? ⤵
Absolutely! Many people use the program for just that reason. Because qualifying for two mortgages is not something most people can do, many choose to use this program to move into the home now that
they wish to purchase when their current home sells.
|