Question 1

What is Rent To Own and how we do it?

Accepted Answer

The Rent to Own program is a combination of a lease contract and an option to purchase contract. The lease contract gives you the right to rent out the house. The option to purchase contract gives you the right, but not the obligation, to buy.
 
We made it very simple for you. You move into the home today with a lease contract and an option to purchase contract to purchase “Your Home” at a later predetermined date at a pre-determined price agreed to before you move in. During the time you are leasing the home as a tenant, our team of experts will work with you to get you completely ready before the end of the Rent to Own program. We design a detailed plan specific to your case at the beginning of the program to provide you enough time to clean up past credit problems and improve on any aspect of your credit profile required by current mortgage guidelines.
 
In addition to helping with your financial profile, we will help you save enough money during the lease term so you have the required down payment for your future mortgage. A portion of your monthly payment goes towards rent/lease and the other portion of your monthly payment goes into a saving component used towards the final down payment for your mortgage. This saving component is often referred to as monthly option consideration (full credit given to you towards your mortgage when you exercise the option to purchase your home). The total saving accumulated during the lease are added to your initial saving given to us to turn into your final down payment at the end.

Question 2

What are the benefits of the Rent To Own program for me?

Accepted Answer

You would be home owners with very little money down.
You would have very little risk and there is no obligation to buy the house at the end.
We provide immediate control and possession of the house for you.
Your payments are fixed during the contract.
Future purchase price is definite and tenants benefit from additional appreciation.
If you have credit issues, the program helps you rebuild your credit and get you back up on your feet.
Our program allows you more time to accumulate a down payment to purchase the property in the future.
Enables you to budget finances, improve your credit and practice home ownership before actually purchasing the home.
You would build equity toward future owned residence rather than paying rent to landlords.

Question 3

What are the steps involved?

Accepted Answer

1- You need to fill up the pre-qualification form HERE.
 
2- If you pre-qualify, we will contact you and set up your phone appointment in order to better understand your situation and come up with the best possible home ownership solution for you.
 
3- You should get ready for a coffee chat. In this meeting, we will cover some details regarding your program, you can ask us any questions regarding the Rent to Own program and we would provide you with essential education/information that you need to successfully complete the program.
 
4- We will collect all the documents required for your formal application and beging your Rent To Own qualification process with our credit/finanace team.
 
5- If you qualify, you will be connected with our property experts to choose your future home, keeping your best interests in your house hunting.
 
6- Once you select your home, we will take over the process and purchase your home for you.
 
7- You will receive the keys. Welcome home!

Question 4

How much initial savings do I need to start my Rent To Own program?

Accepted Answer

This is highly dependent on your specific financial situation. However, generally we require you to have minimum 3%-5% (OR minimume of $10,000) of the current purchase price, determined by your financial analysis done by us and our credit experts. For example, if you qualify through our program to buy a house at $450000 today, you need to have an initial saving of $13500, in the form of cash. This initial saving is referred to "initial option consideration", and would be fully credited towards your final mortgage down payment if you qualify and choose to exercise the option to purchase your home.

Question 5

What kind of properties can I choose in my Rent To Own program?

Accepted Answer

After we complete your financial analysis, you will be given a price range based on your specific situation. This price range is determined to maximise your success in the Rent to Own program towards your future home ownership. You will then be connected with our property experts and will choose the home of your choice.

Question 6

Are there any fees during the qualification process?

Accepted Answer

No. We do not charge any fees to qualify you for the program.

Question 7

Can I still qualify if my credit is not great?

Accepted Answer

We are not credit score driven. As long as your credit profile can be improved to the lender's standards by the end of the lease term, where your credit sits today will not be a deciding factor in your approval. Also, you are not alone in this journey at all. We and our team of credit experts will be helping you all the way through the program with a detailed and thorough credit action plan to ensure that you would be qualified for your mortgage with the best lenders at the end of your program. Do not forget! We are here to help you become the successful future home owner!

Question 8

Who is responsible and pays for the regular maintenance of the property?

Accepted Answer

You are responsible for the upkeep of your home! You will be the direct benefactor from any improvements that you make – it will increase the value of your investment, so you are responsible for the property’s maintenance. Please remember that all homes need regular ongoing maintenance, so you should budget accordingly when considering the monthly payments. When you first picked this home, you would have called a home inspector and know exactly what is required for that home in advance.

Question 9

Who pays for the repairs?

Accepted Answer

This is your home and you will be mainly responsible for the repairs. However, in order to help our clients financially and set them for success, we will help you with major repairs. That is, any minor repair below $1000, you would be responsible for it. Any major repair above $1000, we will cover that after we collect $1000 deductible from you, per repair per incident.

Question 10

Who does the home inspection?

Accepted Answer

We have each home professionally inspected prior to closing and ensure that your home is in good condition and free of hidden problems in all major areas (roof, electrical, heating, cooling, and foundation). The cost of the home inspection is your responsibility (usually 500$). We will use an inspector of your choice but we highly recommend our trusted companies which you can call.

Question 11

Will my monthly payments increase during my Rent To Own program?

Accepted Answer

No. Neither your monthly payments nor the future house purchase price will increase. Everything would be pre-determined before you start your program and move in to your new home.

Question 12

Are property tax and insurance included in my monthly payments?

Accepted Answer

Yes. We pay all property taxes and the real property insurance. However, you are required to purchase a resident insurance policy to cover your possessions inside the home. You will be responsible for the utilities, and upkeep on your new home.

Kam Real Estate Solutions Inc.

Frequently asked questions