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Irenttoown's Blog

By Irenttoown | Agent in Sacramento, CA

Rent to Own Transaction Overview

Rent to Own Transaction Overview

Terms of Lease.
The rent to own buyers and sellers enter into a lease purchase agreement for a fixed period of up to 36 months. At the conclusion of the lease, the buyer will have the option to purchase the home from the seller.

Purchase Price. The purchase price will be determined before the rent to own lease purchase agreement is finalized and signed by both buyer and seller. This price is fixed and will not change after negotiated and agreed upon by both parties.

Rent Credit. In addition to the down payment credit, the Seller may offer monthly rent credits. A “rent credit” is a portion of the monthly lease purchase payment that is applied to the overall purchase price if and when the rent to own lease purchase is executed at the end of the lease. The amount of the rent to buy credit and the down payment will vary by each seller and property.

Rent To Own Assistance. Throughout the term of the lease, iRentToOwn provides assistance to enable rent to own buyers to complete a successful purchase at the end of the lease term. We provide buyers a customized credit monitoring and repair program, and a detailed shapshot of the target financial profile buyers should aim to have to execute a successful home lease purchase.


Sample Rent To Own Transactions
(Assumes 24 Month Lease)
Sample Transaction #1 Sample Transaction #2 Sample Transaction #3

Initial Home Price

$200,000 $400,000 $600,000

Agreed to Purchase Price*

$210,000 $420,000 630,000

Initial Down Payment (3%)

$6,300 12,600 18,900

Total Monthly Rent

$1600 $2400 $4900

Rent Credit

$300 $600 $900

Amount Saved for Down Payment

$13,500 $27,000 $40,500

*2.5% annual appreciation

Comments

By Marodok,  Sun May 8 2011, 09:28
theres another best place to find Rent to Own, Houses for Rent, Homes for Rent and how rent to own works.

http://www.rentuntilyouown.com

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