What is Rent to Own?
Rent to Own is an arrangement that provides a tenant the option of purchasing the home at the end of a set term. It is a contracted agreement and allows the tenant to springboard out of the endless cycle of paying rent and owning nothing to owning their own home even though their credit is bad. The key is the initial payment – the backbone of the opportunity.
For example: Tenant “A” has bad credit and is stuck paying rent. A $200,000 home becomes available for Rent to Own. Tenant “A” submits $5,000 as an Initial Payment to Front Porch, moves in and pays $1,500/m in rent for 36 months. Their credit improves because they are following a program to pay bills on time every month. A portion of their rent is used each month to increase the Initial Payment which adds up over the 36 month term to be the down payment they take to the bank to purchase the property at the end of the term.
In this way, the tenant “A” can own a home in a little as 36 months!
The benefits of owning a home are many: from choosing paint colours and garden plants to picking accents and building additions! It’s your space and you own it! Not to mention the equity you create as you make it yours.
Rent to Own is an opportunity to purchase a home through paying the rent. The price, the rent and the term are all determined at the beginning, so you go in knowing the details. Interested? Take your first step to home ownership!
Step One
Save. Put some money in a separate account, jar or envelope. Don’t touch it. Keep adding to it until you have between $5,000 and $10,000. Focus on the goal of getting this amount. Sell stuff, do extra jobs, ask for cash gifts instead of stuff when you have the opportunity. Share with family and friends what you’re doing. Maybe they can help! Once you have $5000 – $10,000 Contact us and within a short time, you can be on your way to owning a home!
Step Two
Prequalify. Begin to collect the documents you will need to prequalify and contact Front Porch.