Making Your Dream a Reality

What is Rent to Own?

Rent to own is a way to buy or sell a home. However, the transaction does not take place immediately. If you think about the standard or the traditional way of buying a home, the sale takes place immediately and everybody is done with the transaction at closing. Even if the tenant/buyer does not have enough money to pay for the home (which is most of the time) the transaction can be completed because a bank will help the buyer come up with the full purchase amount.

A rent to own transaction is different. The buyer and seller agree to the possibility of a sale at some point in the future. Ultimately, the buyer decides if the transaction will take place. In the meantime, the buyer makes payments to the seller, and a portion of those payments (usually) reduce the money needed to buy the house at a later date.

How It Works?

A rent to own transaction starts with the contract. Both the buyer and seller agree to certain terms, and condition. At the beginning of any rent to own transaction, the buyer pays the seller an option premium. This is just a payment that gives the buyer the right or “option” (but not the obligation) to buy the home at some point in the future. That payment is non-refundable, but it can be applied to the purchase price (if the buyer ever buys the home, he/she won’t have to come up with as much cash).

The buyer and seller set a purchase price for the homein their contract.
At some point in the future (usually between one and five years, depending on negotiations), the buyer can purchase the home for that price – regardless of what the home is actually worth. If the home has gone up in value faster than expected, things work out in the buyer’s favor. If the home loses value, the tenant/buyer has the option to buy the home or not. Buyers usually apply for a mortgage when the time comes to purchase the home.

Of course, the buyer also makes monthly payments to the seller. Those payments serve as rent payments (because the seller still owns the property), but the buyer typically pays a little bit extra each month. The extra amount is usually credited to the final purchase price, so it reduces the amount of money the buyer has to come up with when purchasing the home. Again, the extra rent “premium” is non-refundable if the buyer does not exercise the option to buy, it compensates the seller for waiting around to see what the tenant/buyer will do (the seller cannot sell the property to anybody else until the agreement with the tenant/buyer ends).

Some of the Benefits of Rent to Own.

For buyers, some benefits include:

  1. The ability to build equity.
  2. The ability to “buy” with no credit or with a bad credit score.
  3. Do not need to qualify for a bank loan however, the buyer get to enjoy living in the comfort of their home while building their credit.
  4. To locked the purchase price, in case home prices rise over the next few years.
  5. Part of the rent payment (usually) goes toward purchase price of the home.
  6. To get to know a home and neighborhood without making a huge purchase.
  7. The Rent to Own Program may also require less money up front, while a mortgage might require a substantial down payment.

For sellers, some of the benefits include:

  1. Seller do not have to pay the pricey real estate commission.
  2. Access to more potential home buyers (with credit or bad credit).
  3. The seller get long-term tenant who will be taking care of the property.
  4. Seller is not responsible for maintenance and repair in the property.

How Do I Find Rent to Own Homes?

At JV Real Home Solution, we specialize in Rent to Own.

We understand that buying a home in today’s market place is more difficult than ever before. Banks and other financial institutions require home buyers to have a very good credit score, usually 720 or better, a huge payment of 20% down, a long employment history and low debt-to-income ratio. Due to these guidelines, the process of home ownership makes it more difficult for home buyers to qualify for a loan.

For these reasons, we are offering the Rent to Own Program to those potential buyers who may not qualify for a bank loan. We help our clients find the perfect home that meet their needs, by providing owner financing with a low-down payment and no bank loan or credit check. We make the process of home ownership more affordable for everyone.

Rent to Own, is one of the best and easiest way to become a homeowner because it offers the advantages of home-ownership before even buying the property.
 

  1. The buyer can live in the property they want without buying it right away.
  2. The buyer lives in the property with bad credit or no credit at all.
  3. Do not need to qualify for a bank loan, while building their credit.
  4. It allows the buyer to lock the purchase price in case the property appreciates in value in the near future.
  5. The buyer can build equity if the home prices rise over the next few years.
  6. The Rent to Own usually require less money up front.
  7. Part of the rent payment may go toward the purchase price of the home.
  8. The buyer decides if he/she want to buy the property or not.
Either buying, selling or renting a home, we are here to help in your journey

Are you ready to live the American dream of home ownership?

Call Us Today to See How We Can Help You

Call/Text 718-581-3399 or Email Us at: jvrealhome@gmail.com

  1. Buying: own your home with no Bank Loan or Credit Check.
  2. Selling: we pay full price for your home, guaranteed!
  3. Renting: rent to own your next home

Our goal is to help you accomplish your goals and live the American dream of home ownership regardless of your Credit!