RTO: How it works Rent To Own is very simple – it’s a way to buy a home without a bank by putting TIME on YOUR side!
Repair credit issues while you live in the house you want!!!
Face it, the price of housing is going up faster than a person can save! The longer you wait, the higher the price!
Most Americans have 2 problems keeping them from the enjoyment of home ownership: Lack of Cash Credit issues
1. Lack of cash – the bank wants a big downpayment. We can work with you. For example, many people work out a time payment plan, spreading the RTO fee over several months. Many people use their tax refund or quarterly work bonuses.
Ways to solve the cash problem: -payment plan to Grayson Management -year end job bonus -draw from retirement plan -parents -tax refunds
2. Credit issues – bankruptcy, divorce, not enough time on the job, past mistakes… RTO lets you into a home with a “rental application screening” –
Can you pass this rental screening… -Do you have a steady job? -Will your past 2 landlords give you a good reference? -Do you make enough to afford the monthly payments? -Etc.
Once Approved:
– Sign up for the “To Own” part of Rent To Own. This involves paying the RTO fee – either pay in full or set up a time payment program. This can be very creative.
The program is set up for 2 or 3 years, renewable if you need more time. Remember, time is on your side – you have time to clean up your credit.
When your credit is cleaned up, you can go to the bank. Now the story is much different – the Mr. Banker says “Come in! Sit down! Would you like some coffee!? Let’s talk!”
Generally, the cleaner the credit the better the bank interest rate. The better the rate, the lower your payment.
You don’t have to play the “timing” game…my lease isn’t up until this date, I have to find and close on a house before that date, the bank rates are high the month I qualify for a loan, etc.
You can stay in the RTO home you already live in, the kids sleep in their same bed, you NEVER have to move AGAIN! People with good credit get the good rates.
There are also many “first time home buyers” programs to get good rates. You can wait until these come available.
RTO lets you get into a home, enjoy it, set down some roots for your family; your kids can sleep in their own bed…giving you time to clean up your credit.
RTO gets you into a home, even if you have filed bankruptcy. Remember…can you pass the rental screening?
RTO puts every penny of your RTO fee toward the house – no lawyers, accountants, real estate commissions, etc.
RTO allows you to put your rental Security Deposit toward your equity.
More things to know:
Every home is different. They are scattered throughout the area. The list changes frequently. As homes become available, we update the list. If our selection does not suit your needs right now, check back.
You can stay in touch by: 1. check the websiteGraysonProp.com– bookmark it! 2. sign up for our free email updates on the website
Many people put down more than the minimum RTO fee. Why? – helps them qualify if they have blots on their record. – they have the money now and don’t want it to fritter away – they are getting ready to file bankruptcy and need to “spend” any cash – RTO is not considered an asset that can be sold off – builds instant equity – gets them closer to owning the home “free and clear” (can you imagine, when there will be NO MORE HOUSE PAYMENT!!)
RTO fees vary by home – usually depending on the price range of the home
Purchase price of the home are based on current market value appraisals done at the time of sale.
