Perhaps you really want to buy a home in the not too distant future, but your credit score isn’t that great. Or maybe you’re self employed but it’s only been a year since you started your business. Perhaps you don’t have enough saved up for a down payment or closing costs. Are you doomed to keep renting while home prices rise until you’re priced right out of the market?
I have great news – the answer is no! There’s a program out there gaining popularity in the Atlanta metro area. It’s called a Lease with the Right to Purchase, aka Rent to Own. Essentially it means you rent the home until you’re ready to buy it. Then you just call up your landlord, tell them you’ve gotten pre approved for a home loan, and buy it without having to move.
The rent to own model is a terrific program for people who truly want to become homeowners but can’t do it right now. It’s a way to find the home you’d buy right now if you could, move in and start enjoying it, and buy it down the road when you’re able. And since you agree upon the sales price up front, if values increase as steadily as they have been you could be buying it below market value!
The company that does this is a large investment company. The last numbers I read said they had bought over 3000 homes nationwide but I’m sure it’s quite a bit higher than that now. They buy a home specifically for you to live in and you can rent to own up to five years. You pick out the house and as long as it meets some basic requirements they will buy it. You sign a 12-month lease and you can keep renewing the lease for up to five years. You are under no obligation to buy the house, however, so if your financial situation changes you can just rent without any intention of buying it, or give your notice and move when the lease is up.
Sounds too good to be true, doesn’t it? I know, I thought so too when I first heard of it! But I’m very happy to say that I’ve personally helped several families move into homes using this program.
Now, there are some restrictions. You have to have stable employment, verifiable income, no past evictions or felonies, and no pending bankruptcies. The total annual household income must be at least $50,000. They need to know you’ll be able to qualify for a loan when the time comes and they don’t want you to rent to own a house that you wouldn’t be able to afford to eventually buy. They are very lenient about credit scores though. They realize that if you had great credit you’d just go buy a house right now, right?
The house itself also has some restrictions – good ones! It needs to be in a good school system, be in fairly good condition (no fixer uppers,) and not be in an area that would make it hard to rent or sell in the future should you move out at the end of your lease.
Still not convinced? See what one of my past clients has to say:
“When my family and I first moved to GA we stayed at my mom’s. What was supposed to be a few weeks turned into 16 long months. We weren’t in a position to buy a home so renting was our only option. Needless to say, trying to rent home in GA became extremely challenging and frustrating for my husband and me. And just when we were at the end of our rope out of the clear blue we get a call from Karin who tells us about this company that will buy home for you to rent. Of course it sounded to good to be true but, because she’s been a Realtor for years we gave it a shot. I must say, everything happened just like she said it would. Word for word and step by step and within 2 months we moved into our new home. We couldn’t be happier! What I love about this program is YOU CHOOSE YOUR HOME! This is the real deal and we would definitely do it all over again if we had to!” – Rodgers Family
So if you’re tired of throwing away money each month, contact me to get the full details on the rent to own program and let’s get you started on the road to home ownership!
About the Author: The above article How to Buy a House When You Think You Can’t Afford It was written and provided by Karin Carr. Karin has helped literally helped almost 200 families buy and sell homes since 2005. If you are in the market to BUY or SELL a home, she can be reached via email at [email protected] or by phone at 404-855-1807.
Are you thinking of selling your home? I’m very good at marketing homes to sell quickly, and for more money. If you’re a first-time home buyer then you’ll be in good hands. I’ve helped countless first-time home buyers through the entire process of buying that first home! I’ve also assisted several clients with the rent to own program and they are all thrilled that they’re living in a beautiful home that they will soon be able to call their own. I have a real passion for helping folks buy and sell homes here in the great state of Georgia and I would love to connect with you!
I help people buy and sell real estate in the following north Georgia cities: Acworth, Ball Ground, Canton, Kennesaw, Woodstock, White, Roswell, Milton, Alpharetta, Dallas, Powder Springs.