Rent-to-Own means a lease combined with an option to purchase the
premises, within a specified time period, for an agreed-upon price.
Someone Be Interested in Rent-to-Own?
Because it provides a path to home ownership when available funds for a
conventional down payment are not sufficient, and/or time is needed to
repair your credit rating.
How Long is
the Rent-to-Own Period?
and negotiable between you and the premises owner. Depending on your
personal readiness and how much down payment needs to build up, the
Rent-to-Own period could last a handful of months to 12-18 months.
shorter period of time is preferred by the property owner. He or she
typically wants to sell the property as quickly as possible. A shorter
period of time can also be beneficial to the purchaser too, because the
sooner you get out of a rental situation and into ownership, the better.
However, most purchasers enter into Rent-to-Own because they need time
to build up the down payment and repair their credit, and sellers
How Do I
Rent-to-Own agreements typically
require a 1%- 5% down payment or “option fee” to the seller, which is
much less than what would be required for a traditional down payment in
conventional financing. That fee is generally non-refundable but it is
applied toward the purchase of the premises at the end of the
this small down payment, all that is required monetarily is a security
deposit similar to most other rental situations.
A credit check is commonly run as
part of the application process. It is up to the seller to accept or
deny individual applicants.
What If I
Have Challenged Credit?
credit is one of the reasons people participate in the Rent-to-Own
program. Sellers who accept Rent-to-Own applicants understand this.
damaged credit is probably the situation most of us are in today.
It can be
• Not enough credit history
lenders have tightened the criteria to obtain a loan, making it more
difficult to finance. Key to understanding if Rent-to-Own might be
workable in your situation is an honest evaluation of your credit
rating. If you have the type of challenged credit that might currently
be keeping your from qualifying for a loan, but that can be repaired
within about a year’s time with hard work and resources we can provide,
Rent-to-Own will probably be a good match. More serious credit
challenges can also be eventually overcome but might require a longer
period of repair and healing before Rent-to-Own would work. We have
resources for those situations, too.
situations always vary, but generally speaking, we can work with people
in Chapter 13 if they are currently in their payment period or beyond.
People who have had a Chapter 7 bankruptcy must wait two years after
What If I Do
Not Have Problems With My Credit?
Many people choose Rent-to-Own not because of challenged credit, but
because they lack a down payment. You might have good credit without
even knowing it.
Good does not
have to mean perfect.
A score of
620 gets you started with most lenders.
you buy immediately or greatly shorten the Rent-to-Own time period.
interest rates may remain very low at this time.
You may be
able to buy and bypass the Rent-to-Own program without even knowing it!
How Does It Work?
How Much of
the Rent Goes Toward the Down payment?
In order to comply with the law, the portion of the monthly
payment that goes toward the down payment must be a dollar amount above
the market rent for the area. So, as an example, if the market rent for
a particular type of property is $800 per month, the total monthly
payment you’d make might be $1,000, with $200 going toward building up
your down payment. That extra amount per month is called a “rent credit”
and is credited toward the final payment due at the end of the lease.
Renting and Building Up a Down payment and Repairing My Credit. Then
Your Rent-to-Own specialist at B&G
Real Estate Consultants will always be available to help and check on
your progress. The goal is to finish the lease period with a sufficient
down payment built up and a credit record that makes you eligible for a
loan to complete the purchase.
Where Do I
Get That Loan?
resources are plentiful, from nationally advertised mortgage companies
to the bank in your neighborhood. We’re happy to make a referral to help
you with financing. We’re currently working with many of the nation’s
leading financial institutions.
Who Pays the
Taxes or the Condo association fees while I’m Renting to Own?
Typically, the seller.
Who Pays for
Repair and Maintenance?
usually negotiated between you and the seller.
Help For You
consultation with a lending professional to see if you qualify for
repair program available
on Your Side
you every step of the way through the process. You’ve got the knowledge
and power of bgrealestateconsultants.com and its
rent-to-own specialists. It only makes sense to deal with
specialists. We know real estate!
We’re proud to be partnered with some
of the nation’s largest bank holding companies.
Credit for First-Time Homebuyers, Condos Included!
another great resource we can help you with if you’re a first-time home
buyer. It’s the $8,000 tax credit that’s part of the government’s
economic stimulus program. Already, however, time is getting short.
Benefits of Rent-To-Own
IN YOUR POCKET
No need for a large down payment to
Pick a favorite community
You’re a homeowner!
Challenged credit OK
Enjoy home ownership life right
Cleaned-up credit gives you a fresh
Down payment accumulates month by
Work on your credit standing
You have more control than an
Time span can be flexible,
depending on your readiness
Use free resources to make you a
better homeowner and financial consumer
A home is real property, an asset
for you to use to your advantage
What if I
Change My Mind?
At the end of
the Rent-to-Own period, you are not obligated to purchase. Keep in mind
however, that your initial 1%-5% down payment and the monthly rent
credit probably will be forfeited. The goal of the seller is not to
provide housing for people who might, but might not, be interested in
purchasing. The goal of the seller is to sell his or her property. Your
goal as a participant in the process should be equally serious—to own.
The Rent-to-Own option has been made available to help out all parties.
A particular property does not have to be your home for the rest of your
life, but it should be seen as far more than an apartment to “try on”
for a period of time before moving on. Your B&G Real Estate Consultants
Rent-to-Own specialist will help you find the right place based on the
community, price, size and amenities you’re looking for.
What If I
Need a Condominium?
Rent-to-Own specialists are licensed Realtors® and can also help you
find a rent-to-own house that meets your needs, depending upon
availability in any particular location and your qualifications.
Here is all
you have to do to begin.
Give us a
call at (260) 563 5700 and let us know you are interested.
Tell us the
specific or general area where you would like to live.
Answer a few
basic questions about your employment, credit situation and the amount
you can afford to pay. There are no wrong answers! (see application)
Let us get to
work for you. Depending upon your situation, we have put you in touch
with our preferred lender or make a recommendation for a credit repair
services are FREE to you!
may apply, of course, so call B&G Real Estate consultants at (260)
563-5700 today to learn more about this great opportunity.
But if you do have a question after
reviewing this website please feel free to send me an email to
email@example.com, and I will personally answer you.
Contact us today!