Frequently Asked Questions
General questions about our company, service, and properties we offer on this website:
- What does Rent to Own actually mean?
- What is the Rent to Own process?
- Do appliances or furniture come with a rent-to-own home?
- What if I have bad credit? Can I still get a rent-to-own home?
- Is there a down payment on a rent-to-own home?
- How Much of a Down Payment Do I Need?
- What If I Don’t Have a Huge Down Payment?
- What Happens to My Down Payment (Option Payment)?
- What are the benefits of a rent-to-own home?
- What are the requirements of a rent-to-own arrangement?
What does Rent-to-Own actually mean?
Looking for a way to own your own home, but struggling to come up with the cash for a down payment? Our rent-to-own home-buying program may be just what you need!
With our program, you’ll be able to rent a home with the option to buy at a later date. This means you can move into the home of your dreams right away, without having to save up for a large down payment.
Our rent-to-own program is designed to help you become a homeowner, even if you have less-than-perfect credit. We work with you to create a customized plan that fits your unique financial situation, so you can start building equity and investing in your future.
In most cases, a rent-to-own agreement is a contract on a property that works like a lease and leads to a purchase.
It’s often called a lease with an option – or a lease option agreement for short.
The lease portion is a standard rental agreement that includes monthly rent, a security deposit, and other typical terms.
The option in the contract gives you the right to purchase the property within a set period of time – usually around 12- 18 months. This gives you the ability to save money towards a down payment, repair credit, increase your income, need time on the job, or otherwise improve your ability to qualify for a mortgage.
Most of the time people use a traditional mortgage loan to purchase the property prior to the expiration of the option period, but there are other options if your financial situation has unique needs.
We help lots of folks just like you purchase the home of their dreams. Don’t let the fear of a large down payment hold you back from achieving your dream of homeownership. Contact us today to learn more about our rent-to-own program and how we can help you take the first step toward owning your own home.
Fill out the form below to get started on your way to homeownership!
What is the Rent-to-Own process?
The rent-to-own process is actually pretty simple.
Once you’ve seen one of our fantastic properties, we’ll give you an application to fill out. Don’t worry – we help people with all kinds of credit and financial situations, and if you can afford the property, and have a reasonable down payment (option payment) we can probably help you to own it.
After you’re approved to rent the property, you will meet with an attorney to sign the lease and associated documents, pay your option consideration fee, and 1st month’s rent! Then Voilà you are ready to move in!
Your lease/option agreement (also known as the rent-to-own contract) will spell out the length of your option term to complete the purchase of the property – typically 12 – 18 months, but in certain circumstances, we may extend your option if you need more time. We WORK with you to help you to realize your dream of ownership!!
The purchase of your home usually takes place through a traditional mortgage loan, but there are other ways to complete the purchase, depending on your finances.
That’s the process!
Once you’ve completed your mortgage, you’re done – now you own your home!
First step – sign up to find great properties around Winston-Salem and the Triad community just by filling out the form.
You’ll get immediate access to great rent-to-own homes, plus a whole lot more.
Sign up and get started now!
Do appliances or furniture come with a rent-to-own home?
Most of the time, furniture isn’t included with a lease/option purchase.
Generally, the basic appliances are there – like a refrigerator, stove, and sometimes extras, like a dishwasher, a washer, and a dryer.
What if I have bad credit? Can I still get a rent-to-own home?
Yes, you can! Many people with poor or blemished credit can still get a rent-to-own home.
Every situation is different, but we specialize in helping people who have been through tough circumstances (or just made mistakes in the past) to repair their credit and get started on the path to a great financial future. Our program is designed to work with individuals with good, fair, or blemished credit. However, there is an application process as we want to ensure that you have adequate income to afford the payments and a history that reflects your ability to pay, or a pattern of credit restoration or rehabilitation. In other words, if you are recovering from a trial in your life, we want to see a pattern that you are establishing a history of payment since that time. Rent to own is a serious proposition and an investment in a home purchase opportunity. We want to make sure that we treat you fairly and are not putting you in a position in which you cannot be successful. We also offer owner financing where you can buy the home without having to qualify at a bank. In some cases, we can start you out in a lease option situation and “graduate” you to our owner financing program after a period of time. We can qualify you based on your established history with us. This is why so many buyers consider T&R Residential Properties, LLC as their first choice when looking for their dream home!
So fill out the form at the bottom of this page now and get your piece of the American dream!
What are the benefits of a rent-to-own home?
There are a lot of benefits to a rent-to-own agreement!
In the Winston-Salem area, lots of smart people are using rent-to-own agreements as a way to get the home of their dreams without having to qualify for a bank loan right away.
In the past few years, banks have been very tight on their lending criteria. Most people who use a rent-to-own agreement want a few years to get ready to qualify.
Here are a few more reasons to use a rent-to-own agreement:
- Try before you buy! You get to live in your rented home before you actually purchase it, allowing you to make sure it’s actually your dream home. If you don’t like the house, you don’t have to complete the purchase. This is sort of like road testing a car.
- Own without great credit or a big down payment. You can start feeling like a homeowner right away while saving up and improving your credit.
- Lock-in future purchase price. With a rent-to-own agreement, the purchase price of the home is agreed upon upfront. This means that the buyer can lock in the future purchase price of the home, even if the home’s value increases over time.
- Privacy. You’re not listed as the purchaser on any public records until the closing takes place, giving you years of privacy.
- Move-in fast. Since you don’t have to wait for a mortgage, you can often move in right away – and get started living a new life in the home of your dreams!
- Many Lenders treat the rent-to-own application as a refinance which usually is not as stringent a process as a traditional purchase. Your loan to value may also be based upon the appraisal value rather than the purchase price.
So don’t wait! Get started now by filling out the form at the bottom of this page.
Is there a down payment on a rent-to-own home?
Yes, but it is not considered a down payment, it is a non-refundable option consideration fee! The option fee is the money paid to the seller to reserve the right to buy the home. The option fee gives you the “exclusive” option to purchase the home under the terms agreed to in the option-to-purchase agreement. Should you exercise your option to purchase this fee will be applied to down payments or closing costs.
How Much of a Down Payment Do I Need?
That depends on the price of the home, your monthly payment and gross income. However, a range can be as low as $2,000 or up to $10,000 for most of our homes. The rule of thumb is 5% for a Lease Option / Rent-to-Own and a minimum of 10% for our Owner Financing program. Remember, we accept borrowed funds from family or friends, your pension plan, etc., and in some cases can give you up to 30 – 60 days to make the down payment through installments.
Just like any other lease agreement, there may also be a security deposit and a small application fee in addition to the option consideration fee. Of course, you’ll have to pay rent each month.
We can help you to structure the perfect scenario to meet your needs. We’ll show you the rent-to-own calculators and formulas that we use when we prepare your agreement, and help you figure out what’s best for you.
So don’t wait! Get started now by filling out the form at the bottom of this page.
What If I Don’t Have a Huge Down Payment?
We will try to work with you even if you don’t have a lot of money for down payment! There are a few different programs where you can get into the house you like and complete your down payment while in the house (please ask us about our Down Payment Assistance Program).
What Is Your Down Payment Assistance Program?
Our down payment assistance program may help you by allowing you to get into the home you like with a minimal amount of down payment and be given a short period of time to pay the balance of your option payment or down payment over several months.
What Methods of Down Payment Are Accepted?
We are flexible in how we can work with you with your down payment, unlike many of our financial institutions and other lenders, we are able to accept borrowed funds from friends and family who may be willing to lend you the money. You also may be eligible to borrow money from your 401K or retirement funds to purchase a home without penalty.
I Expect Some Additional Funds for My Down Payment, Should I Wait?
If you found a home you like, you don’t have to wait! You can move in with as little as two months’ rent down and transition into our lease option program when you have the additional down payment. This is offered on a case-by-case basis and will be dependent upon your application and credit history.
What Happens to My Down Payment (Option Payment)?
The option payment is paid upfront and secures your option contract to purchase the property. The option fee is non-refundable. If you decide not to purchase the home at the end of the agreement or default upon your agreement, then you will lose your option fee as well as any other money that you may have put down. The option fee grants you the exclusive option to purchase with a contract that has agreed-upon terms. These terms cannot change, and the seller must sell the property under the option terms. However, the buyer has the option to buy or not buy. This is the cost of the seller having made that commitment to sell to you exclusively over a period of time. Should you exercise your option to purchase, then the option fee will be applied towards the down payment, closing costs, or reduction of the purchase price.
What if I Fail to Qualify or Am Unable to Purchase in Time?
If you are unable to purchase the home during the option period, one of two things usually happens:
- The contract expires and you no longer have the legal right to purchase the property. Further, you forfeit all interest to the property and the option fee paid to the seller.
- The option agreement may offer you the ability to extend the agreement. If this extension is provided, it typically requires a small fee and certain criteria to be met. For example, we may require that you are currently qualified for a mortgage and are in the process of closing on the property, or you are not yet qualified for a mortgage but are working with a broker or lender who is helping you become loan “worthy” to qualify for a mortgage.
What are the requirements of a rent-to-own arrangement?
We know that every person, family, and individual situation is different, and sometimes complex.
We do our best to help you uncover creative solutions to help you own the home of your dreams.
Once you’ve had a chance to check out the house, you’ll fill out a rental application that will include detailed information on everyone living in the home, this can be done online. We will also need the following items:
- 3 months of pay stubs.
- Most recent 2 years of tax returns.
- Proof of any other income that you may desire to report.
- Completed Application
Please click on the following link to access the online application. http://rtd4.com/u30713 Also, the application fee is $50.00 per applicant.
We’ll conduct a credit check and verify the income(s) for everyone over 18 who is living in your household to confirm that you’ll be able to make your monthly payment.
People with bad credit, no credit, limited cash available, and other financial situations have been able to use our program to rehabilitate their situation, lease then purchase their dream home.
We’ll speak with your references and previous landlords because relationships matter to us more than just scores assigned by a computer.
Upon approval of your application, a local attorney will prepare all the documents and we will arrange a date for contract signing. The documentation will include a summary of all financial terms and conditions of your purchase, such as (if applicable): purchase price, cash down payment, interest rate, monthly payments, escrow payments, and any other terms specific to your transaction.
Our process is really fast and easy.
We love helping great folks like you reach their dreams, so don’t be afraid – fill out the form below to get started!