The Rent to Own program has been around in Canada for many years and is also in the United States and Europe. It has assisted many families in purchasing a home. The program helps anyone who has no credit, bruised credit, new to Canada, divorced, self-employed, or who otherwise is unable to secure a mortgage with a traditional lender.
So how does the program work?
Well, its quite simple, to be approved for the rent to own program you must be working and have a downpayment of between three and five percent depending on the rent to own company. Some companies may require less downpayment.
How does the rent to own company decide who can participate in the program?
The rent to own company will look at your household income to determine how much home you can afford. They will want to ensure that you can fix whatever issues you may have and save for the down payment within a particular time frame generally two to four years once approved, you will be able to purchase a home of your choice within your budget.
Who owns the property?
An investor will buy the home for you and will remain on title until you can buy it at the end of the lease period. While living at the property, you will be paying rent and saving an option some. The option sum is collected for the potential buyer and is credited towards their down payment or closing costs. The objective is for the potential buyer to have at least 10 percent saved for their downpayment and qualify for a mortgage.
I hope this article gave you some basic understanding of the Rent to Own program.
To see if you qualify for the rent to own program click here.