How Rent to Own Works
How Rent To Own Utah Homes Works
Rent to Own (also called a Lease Option) or Seller Finance is perfect for people who want to stop throwing their money away on rent, month after month, and instead want to start building equity in their new home immediately.
You first pay a nonrefundable Downpayment Option Fee that will be applied to the final purchase price of the home. Your option fee entitles you to be able to purchase the home at any time throughout the option period (usually 24 months) at the lowest market price we can negotiate on your behalf.
Throughout the option period, you’ll be leasing at a negotiated rate. This rate is typically determined by the balance of the purchase price after deducting the down payment and are typically higher than traditional purchase mortgage rates. Since you’re going to be purchasing the home, most sellers have few concerns over pets or how you want to spruce up the home. Unlike a regular rental though, you become responsible for any house maintenance.
Why Our Buyers Succeed
We set you up for success by taking extra steps to protect you and ensure you are able to finance at the end of your term.
- We qualify you for a lease option or seller finance home just like we would qualify you for a traditional purchase by having you speak to a lender to determine your purchase price. At the end of the day, you will need to be able to qualify for a loan and it only benefits you to purchase a home you can afford.
- All rent payments are processed through a third party escrow company, which ensures any mortgage is paid before the seller receives any money
- You will be able to lock down the purchase price of the home. In an appreciating housing market such as ours, this can mean your home may be worth 5-7% (depending on current market appreciation) more than at the beginning of your lease term. YOU will get to keep all of the appreciation, not the seller.
- You will gain equity through monthly rent credit. A portion of the rent will be applied to the purchase price for all on-time payments throughout the term of the lease.
- You will be enrolled in a credit restoration/credit building program. We will be able to monitor your progress and offer assistance throughout the process