Rent to Own Properties FAQ
I am renting now, how is this different?
This is a way to help you get started toward BUYING your own home. Part of your rent payment goes towards the purchase. Instead of throwing your money away each month on rent and having nothing to show for it at the end of the year, with RentToOwn-MN, each month 25% of your monthly payment is credited toward the purchase of the home.
For example, if you were paying $1,000 a month in rent you would have at least $250 a month going toward helping you purchase the home. That's $3,000 after 12 months!
Do I have to 'qualify' for this program?
Not in the usual sense of having to meet certain income and debt ratios, or achieving a certain
credit score as would be necessary for most mortgage companies. Your credit and finances are not the restriction they would be with a conventional mortgage company. Although it actually makes sense to buy a home this way even if you could get conventional financing today, many of our buyers do have some issues that need some time to be resolved.
Is the price of the home established in advance?
YES. The price of the home is decided at the time you sign the Lease Agreement and is not affected by the local market conditions. Remember, your 'rent credit' may be used toward the purchase of any home we have available for sale. We may even be able to build you a home if you prefer not to buy your current residence.
How long is the Rent To Own period for?
Typically we can give you twelve months and quite often up to twenty-four months before you would need to complete the purchase. Each property is treated individually and we try to accommodate your own situation.
HOWEVER, you may buy at any time within the length of the agreement. You do not have to wait till the end of the agreement.
What do I need to get into my own Rent To Own home?
Only a small down payment, and the first and last months rent. We can even spread some of this out over 30-60 days.
Who pays the property taxes and insurance during the Rent To Own?
The property owner. You pay the monthly 'rent' and utilities etc. until you actually complete the purchase.
How do I actually find a Rent To Own home?
Click the "
Properties Available" button to go to the list of properties we currently have available. Homes on this program sell very fast, often in hours rather than weeks and months. For this reason you need to be ready to make a decision when you start looking for a home. We try to accommodate your moving dates and if, for example, you need to give 30 days notice to your Landlord you can probably secure your rent2own home and move in 30 days or so. We maintain a short list of buyers ready and able to move when a home they like becomes available. Some homes therefore are never even advertised. If you are serious about getting into your own home please give the closest office a call and ask to be put on their list.
Can you offer me any financing and when do I have to have my financing ready?
Our company can help with some financing, seller carrybacks, and so on. Although, the more money that you can come up with, the easier it is going to be and the lower your monthly payments are going to be. Next, within 30 to 60 days of your option date, you will then want to get your financing process started. You can go to any lender (we can refer you to some if needed) to get a pre-approval letter, stating the amount that you will qualify for.
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