The General Question And Answer From Clients
Your combined gross annual income must meet the requirement for the home you want to buy.
It would be best to have or nearly have the 3% option consideration payment. Fill out the application thoroughly and honestly. If you have any questions or need assistance, please get in touch with us. Your application is successful if you meet our criteria, which are more reasonable compared to traditional banks. We will meet with you to answer any questions and discuss the next steps for getting into your dream home.
The maximum price depends on your specific situation. We encourage you to complete our questionnaire or go through it together so that we can find the best solution that suits your needs.
The Option Consideration refers to the money you need to provide for the Rent-to-Own program. Typically, it is a minimum of 3% of the purchase price at the beginning of the program, with an additional 7% spread out monthly over the program’s terms. At the end of the program, 100% of the option consideration will be put toward your house as a down payment. A larger option consideration means a larger down payment or lower future mortgage payments.
We require you to save 10% of the purchase price of your future home. This ensures you can make your future mortgage down payment and cover the legal fees and closing costs. At this stage, you become homeowners in training.
To ensure your success, we want to ensure your monthly rent, future purchase payment amounts, and any other ongoing payments (such as car payments) do not exceed 40% of your monthly gross income.
No, subletting is not allowed during our partnership to ensure that you are not held liable for any issues caused by someone else.
There are several options:
Save the required amount and contact us once you have it.
Consider selling off some of your assets, such as toys or vehicles, to raise the necessary funds.
If you are close to having the required amount, offer something as collateral for the remaining portion.
Ask friends or family members if they can lend you the option consideration.
Absolutely! Our Rent-to-Own program is designed to help recent immigrants and self-employed individuals who may face challenges obtaining bank financing.
Your purchase price will be set near fair market value when you exercise the option to purchase. The final price is determined and agreed upon when we sign the option to purchase the contract. Your monthly rent includes a predetermined portion credited toward your option consideration. When you exercise our option to purchase, this amount becomes your down payment. It operates as a forced savings account, and the money will be used for your down payment and legal/closing costs when you’re ready to purchase the home.
Minor upgrades are generally permitted to increase the value of the home. However, since you are not yet the owner, any repairs or changes must be agreed upon between you and us as the current owners.
We will work with you to improve your credit rating during the agreed-upon term (either 24 or 36 months). We will also save your initial option consideration money and monthly “future purchase” payments. These funds will go toward a new mortgage and legal/closing costs. With your repaired credit rating, a history of paying rent on time, and an improved credit score, you should be ready to qualify for financing and purchase the home from us.
We cover these expenses as part of your monthly rent payments.
As a tenant, you are responsible for paying utilities such as heat, electricity, water and sewer, cable, phone, internet, and personal contents insurance, just like in any other rented or owned home.
Absolutely! We welcome families and individuals with children or pets who qualify for our program.
If the bankruptcy has been discharged, we will work with you to help you rebuild your credit through our Rent-to-Own program. This will increase your chances of qualifying for a mortgage in the future.
As long as you can demonstrate a history of commitment to employment and keep up with the monthly payments, changing jobs should not be a problem.
Since the home will eventually be yours at the end of the agreement or term, you are responsible for all appliance and home repairs under $1,000. Before finalizing the agreement, a home inspector will complete a full inspection with you present. You will be responsible for the home inspection cost, as it will be your house at the end of the program.
The time or the term is flexible. Most tenant buyer agrees on 24-36 months.
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- LV Real Estate Consulting
- info@LvRealEstateConsulting.com
- 647-957-5558