In the past, I’ve always presented rent-to-own scenarios as being disreputable. However, there is now one instance in which this kind of arrangement is actually viable.
A company here in the Portland metro area has totally flipped the script on rent-to-own arrangements. Their success has put millions of dollars into our local market recently, and so today I want to share some details on what this company is doing.
First, before borrowers can take advantage of the great terms this company offers, they do need to undergo a process similar to pre-approval. Essentially, borrowers must qualify for the rent payment.
However, the parameters for this stipulation are fairly forgiving. So long as you have about three months’ worth of rental payments in savings, you should be able to qualify. The company doesn’t require big down payments or ask for a large earnest deposit, and they also cover the cost of inspections.
Once a buyer is qualified, the company pays cash for the property just like in any other sale.
Technically speaking, the company acts as the buyer of the property, then allows the borrower to live there through a rent-to-own scenario. Best of all, though, people working with this company are under no obligation to go through with a final purchase if they eventually decide against owning the home.
If you do decide to purchase the home, however, you can do this at any time after moving in. So long as you abide by the terms the company has set, there is no concrete time frame you must follow in purchasing the home. That said, the company will add 4% to the total price for every year you choose to rent, as this is the average appreciation rate.
This option is great for anyone undergoing a transition in their life. Whatever may be holding you back from a traditional home purchase, working with this company can be a fantastic substitution.
Of course, not every home on the market will qualify for this program. The company does have some criteria. Still, most houses that are free of structural or safety issues will qualify.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.