We all could use a little help on credit, me included. In my time, helping home buyers reach their goal of home ownership, I have learned a few tricks of the trade to help get that score up 20
Rent To Own A Home Has Never Been Easier Or Cheaper
If you are reading this Post, this blog, whatever it is, you probably have a little interest in getting into a home that you will eventually buy. I don't blame you, people throw away 10's of thousands of dollars a year just to pay down someone else's mortgage. They get to benefit from renters in more than one way... 1.) They have someone pay their mortgage 2.) They get to realize profits from the sale of their rental when they sell by creating equity over time. If you want to learn more about that I will share a link (eventually) but chances are, you already realized the benefit of home ownership. So let's cut to the chase.
The Cotton Group of West USA has partnered with investors that will purchase a home for you, that you get to rent for up to 5 years, with the option to buy. Let's say you need 20 more points on your credit score to qualify for some down payment assistance program, or just to qualify for the purchase of your home. You can move into this property, this home, and buy it from our investor partners anytime within the 1st 60 months. They do charge a little more on the resale, but chances are prices will go up or have gone up. You will know what your cost is every year, and you will have full transparency throughout the transaction and your time in the home.
What it does more than anything is it gives you an opportunity you didn't have yesterday. If you were to look at all the houses that are rent to own, or rent with option to purchase on your MLS today you would see about 10 -20, and that's that entire valley, let alone not in your location of interest. You get to pick out your home, and we just make sure it qualifies for the program. When you partner with us, you get properties that are for sale on the MLS, that our partners will sell to you when you are ready to buy.
Sounds to good to be true? What's the catch?
99.00 fee to see if you qualify, but we reimburse that at successful close of escrow of the home you will buy, and in most situations we can call and explain your situation to them to see if you would qualify to save you that 99 bucks out the gate if it's going to be a 'no'. What do you need to qualify, 45,000 in household income or more. 550 credit score or more, and no active bankruptcies. If you have all 3, then there's a great shot we can start shopping today. Click on this link and let's get your registered. If you aren't there yet, we can help you get there.
Purchase price has to be 350,000 or less, and you will have to qualify based on your income.
How long does it take?
From the moment you put an offer on a home that is approved by our team, you will need about 40 days to close on it so you can move in. Once you live in the home we can show you several programs that you might qualify for with no money down, no closing costs, and no mortgage insurance. If you qualify for that, then that would take another 60 to 90 days to close on there, but it doesn't matter that much because you are already in your home and you don't have the stresses of getting kicked out.
What if the market takes a dive and prices drop?
Well then don't buy the home. Plain and simple. After your one year lease is up, move out.
Will they put me into something I can't afford?
No. They use specific formulas to qualify you and so that you can verify what you can afford. 1st is the 35% rule. Meaning take your monthly income times that by 35%. If you make 5000/mo that would be 1750/mo you qualify for. No let's see you have 2 car payments and maybe a credit card and your payments on those are about 600/mo total. With your total Debt you can only qualify up to 45% dti, meaning in the previous example of 5000/mo, you would qualify for 45% of that or 2250 - your other debts of 600... you would only qualify for 1650/mo for the rents. If you have any confusion, email me your income and your debt amount and I will be happy to help calculate that for you.
So what do you have to lose?
We've eliminated the timing issue because you can get the home you want, today, and get qualified when you can. No large deposit on move in, it's still just a simple rental. You have 5 years to qualify or move out when your lease is up with no penalties. If the market crashes, don't buy it. If it goes up higher than 5% per year, which it has, the last several years, you will already have equity in the home when you purchase. We can't predict what the future holds in house prices, they may go up, they may go down, but by renting until you can buy you can make an educated decision if you like the home at that price. Win/win.
I hope I have explained it well enough for you to see you in the value of the program. If you don't need to rent 1st and are ready to buy today, we can help with that too. ;)
Click HERE the link to get you registered.
1.) No large deposit down for the option to purchase
2.) You buy the home 10,000 above what it's for on the MLS, or their final purchase price, within the 1st 12 months. (Prices increase annually by about 5%)
3.) Need a 550 credit score and make at least 45,000 in household income and no active bankruptcies.
4.) 35% of your gross income to qualify for rents but you can't be higher than 45% of dti with your all your other debts included.
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If you are reading this Post, this blog, whatever it is, you probably have a little interest in getting into a home that you will eventually buy. I don't blame you, people throw away 10's of