December 19, 2014 | No Comments YetTags: Broward County Rent To Own, buying a house with bad credit, Buying a House Without a Realtor, buying real estate, for sale by owner, How Does Rent To Own Homes Work, How To Buy a House Without Banks, How to do a Lease Purchase, How To Sell Your House if Over-Leveraged, how to sell your house without a realtor, lease option, lease purchase, lease to own, Lease-Option FAQs Broward County, sell your house fast, we buy houses
Lease-Option FAQs Broward County (Tenant-Buyer)
Q: What is the Lease-Option Process?
- Submit a Free Online Application via our at: http://fchomesbroward.com/application or Call Now at 786 505 8884.
- Submit full application if haven’t already.
- Visit the home or homes you are interested in to decide whether or not it is for YOU!
- Need Credit Repair? We can help!
- Agree on Terms (Down payment, Monthly payment, Term, and Price) and set up closing with attorney (full down payment and first full month’s rent will be due prior to move-in and can be submitted at any point during this process).
- Sign contracts, get the keys and move in!
- Let us know if you need mortgage broker referrals! We are not a lending institution and it will be your mortgage broker who will help you get your home loan when you’re ready to exercise your option.
Q: What are the benefits to renting-to-own as opposed to just waiting until I qualify for a home outright?
ANSWER: There are numerous benefits to renting-to-own:
- You can move in the home you want to buy NOW knowing that the funds you’ve put down as an Option Down Payment are going towards the home 100%. In other words, the Option Down Payment is NOT an extra premium fee that you’re paying just to rent-to-own.
- Typically when you get an approval for a loan, it comes with an expiration date. That puts a lot of pressure on you to find the right home in a short amount of time. With rent-to-own you can enjoy the home you want to buy NOW and take your time repairing your credit, building up an even higher down payment and/or shopping around for the right loan for you.
- Most home buyers don’t have the luxury of being able to shop around for the best loan. Since you’re already living in the home, you can make the banks work for YOU by having the freedom to explore all competitive offers.
Q: What is the qualification process to be accepted as a tenant-buyer?
ANSWER: The qualification process is quite simple…from your application we will verify rental history, employment/income and background/public records. Plus we’ll have a credit repair specialist review your reports to make sure we’re setting you up to win with enough time and a game plan on what you need to do regarding your credit.
Q: I have challenged credit. How good does one’s credit score have to be to qualify for your Lease Option program?
ANSWER: It’s not so much the score that we look at…we’ve seen scores around 500 (even below) be restored to the mid-600′s in less than 9 months…even with folks who have bankruptcy and foreclosures on their records! Credit IS repairable if one is committed to a solid plan of action. Restoring one’s credit doesn’t happen over night which is why renting-to-own is perfect for such a situation.
We’ve had clients restore their credit in a matter of 3 months! Other situations will take longer. Everyone will be different so that’s why we get you a analysis from credit experts.
We have an EXCELLENT credit repair company we can refer you to if you’re not already working with someone. Over
There are some clients who need more than 18 months to repair their credit…let’s say they had a bankruptcy last year and need to wait at least 2 years with a solid payment/new credit history before they can be lendable again. No problem! We make sure we match those clients up with a home whose owner is willing and able to extend or start off with a longer term. Again, the beauty of how flexible and customizable a rent-to-own transaction can be is one of our favorite aspects of our Lease Purchase program!
Q: How do I secure the property?
ANSWER: A property isn’t taken fully off the market until contracts are signed and all funds are in escrow. Very rarely is someone NOT approved because our Lease-To-Own program understands and is flexible with damaged credit and special situations. The greater challenge will be other applicants beating you to the punch!
Q: What contracts are signed to seal the deal?
ANSWER: Rent-to-Own is also referred to as a Lease-Option transaction. The contracts include a Standard Lease/Rental Agreement with an Exclusive Option to Purchase. You lock in the price and terms for 24-48 months (or more), depending on the owner. Most of our terms are for two years.
Q: What is the average option down payment required?
ANSWER: Every home is different. Typically somewhere ranges 5-20% of the option price is what we are looking for as an option down payment (sometimes referred to as an “option fee” or “down payment”). We have found that the higher the option down payment (especially if it’s MORE than the minimum), the more flexible we can typically be on the terms. Your are going to need these funds anyway in order to exercise your option, so the we are simply requiring that this be taken care of up front. Plus it’s easier and quicker to get qualified for a loan as 100% of your option down payment goes towards the contract price when you are ready to exercise your option.
Q: Can I use my 401k funds for my option down payment?
ANSWER: Yes! Many clients have taken out loans from their 401k plans for their option down payment. Some retirement funds will also allow you to take a distribution without penalty, too, because you’ll be able to demonstrate that these funds are going towards a home. Also, for applicants who have recently changed jobs or are about to change jobs, you can elect to take a full or partial cash out distribution rather than rolling over the funds to the new company. Whatever the situation, we definitely recommend consulting with your administrator first to find out all the eligibility and any other requirements that may be involved.
Q: What happens if my application is turned down?
ANSWER: First thing to clarify…”turned down” doesn’t necessarily mean that you are not approved for our program overall. To date, the only applicants who have not been approved for the program were those who were not honest on their application. Others have been “turned down” because the we had to choose between multiple APPROVED applicants because, of course, only one family can get the home. When that happens, the application is already processed and nothing further is needed. We will keep you in filed and let you know of our new properties.
If You Would Like To Fill An Application Click Here: http://fchomesbroward.com/attention-renters/ Or Call Now at 786 505 8884
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