1. Does my eligibility depend on my credit?
No. Your job and your earnest money are your credit.
Click here for a free guide on how to
understand your credit score.
Source: FairIssac
(Adobe Reader required -
click here)
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2. How flexible do I need to be?
You need to be flexible in your terms. There are a lot of people
looking for quality rent to own homes. If you're looking to
rent to own, we recommend you be reasonable in your expectations.
Rent to own homes are not common.
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3. Do rent to own homes in Georgia demand premium rent and deposit?
Yes. A rent to own home will require a higher earnest money deposit and
higher rent than a typical rental property. But remember, you are
buying the home and you will be building equity as
you rent. You don't get these benefits by renting a home.
In the long run, the deal will be cheaper for you than just renting.
Plus, a rent to own program is actually cheaper than a conventional mortgage:
|
Category |
Bank Loan
or Mortgage |
Rent to Own
Program |
|
Down payment: |
typically 10 to 20% down |
typically 3 to 5% down |
|
Closing costs: |
between $2,500 and $5,000 |
small application fee (under $50) |
|
Credit: |
penalties for bad credit |
your credit is not an issue |
|
Escrow account: |
mandatory account |
no escrow account required |
|
Payoff: |
slow for the first 10 years |
accelerated equity builder |
|
PMI payment: |
required if less than 20% down |
no PMI payment |
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4. How long does the process take?
The process takes about 2 weeks
to qualify you and get you moved into your new home.
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5. What are my costs?
Typically, there is a small application fee to qualify you. Other costs
like earnest money and rent will vary from home to home.
Rent to own cost advantages over a conventional mortgage:
|
Category |
Bank Loan
or Mortgage |
Rent to Own
Program |
|
Down payment: |
typically 10 to 20% down |
typically 3 to 5% down |
|
Closing costs: |
between $2,500 and $5,000 |
small application fee (under $50) |
|
Payment plan: |
no customized plans |
custom payment plan to fit your needs |
|
Escrow account: |
mandatory account |
no escrow account required |
|
Payoff: |
slow for the first 10 years |
accelerated equity builder |
|
PMI payment: |
required if less than 20% down |
no PMI payment |
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6. What is the process to work with you?
- Review our current listings -
click here
- If you have questions about our listings, contact the listing person by phone or
e-mail.
- Complete an application.
- If your application is approved, the owner will review the deal with
you.
- The deal will be completed and you can move into your new home.
For more information, please review our
Information page.
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7. What do you have to do now?
Review our current listings
and contact the listing person if you have any questions. If none of
the listings
meet your needs, register for our
e-mail notification service and be one of
the first to know about new home listings.
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8. How much house can I afford?
This depends on your other expenses. While part of the
application process is to ensure you can comfortably make the monthly
payments, the restrictions are not as strict as most lenders. However,
a general rule of thumb is, your expenses shouldn't exceed 25% of your
gross income.
So, if you and your spouse/partner earn $40,000, then you can afford $10,000
per year in house payments or a $833 per month house payment. Some banks
will suggest that you can afford as much as $1100 per month based on a 33%
payment ratio.
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9. Can you help me if I have a foreclosure or bankruptcy on my credit
record?
Yes, our listing contacts can help you if you have experienced a bankruptcy or a
foreclosure. They can help you if you have any type of negative credit
history or no credit history at all.
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10. What happens when I apply for a home?
Here is a summary of our process:
- You will complete an application.
- Your application will be processed, if you are approved...
- You will review the paperwork and sign the agreements.
- The property manager or owner will then collect your earnest money, rent, and application fee.
- They will give you the keys and help you transfer the utilities into your
name.
- Then you can move into your new home!
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11. Are your programs similar to a lease option or
lease purchase?
Yes. The terms "lease option" and "lease purchase" are
sometimes intermixed, but they are different.
Lease Purchase
At
the end of your lease agreement, you purchase the home. It is a
contract to buy with a
delayed closing date
and a lease to cover the issue
of possession. This type of agreement is the same type of lease purchase program offered by licensed
real estate brokers.
Lease Option
At the end of your lease agreement, you have the
OPTION to purchase the home.
It is a
contract to buy with a
delayed closing date
and a lease to cover the issue
of possession. But, you are not obligated to buy the home.
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12. Where are your homes located in Georgia?
At this time, the homes are typically in and around the city of Atlanta. Click on the county's name for a neighborhood
profile
(Adobe Reader required -
click here):
Community profiles source: Georgia Department of Community Affairs
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13. Are pets and smoking permitted?
Yes and no. Pets and smoking are a very big concern because of the damage they can cause to a home over time.
Outdoor pets and some smaller indoor pets can be considered, however
there will usually be an additional charge for a pet deposit which will
depend on the type, size, and number of pets. When you purchase the
home, the pet deposit could be credited towards your purchase.
Since you want to feel at home, and even though this is not a recommend
course of action, you should be allowed to smoke in your new home.
You may be required to provide an additional deposit that could be credited towards
your
home's purchase price at the end of your agreement.
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14. I don't see a home on your site that meets my exact
needs, do you have others?
Yes, our business partners are constantly buying homes. Please register for our
e-mail notification service
and we will notify you when a new property becomes available.
Click here
to sign up for e-mail notification.
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15. Do you have any
information that will help me understand my credit score?
Yes. Click on the name of the publication below:
(Adobe Reader required -
click here)
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16. What kind of homes do you offer?
Our business partners offer good quality homes in good neighborhoods.
They take pride in their properties. Sometimes they will update the homes with new carpet,
fresh paint inside and out, and even clean the entire home so you can
move right in. Most properties come complete with a stove, dishwasher, central heat and air, and sometimes a microwave
oven and a
refrigerator.
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