FAQs
What is a Tenant-First Rent-to-Own program?
- A Tenant-First Rent-to-Own program is a housing arrangement where tenants have the opportunity to build equity in the property they are renting, with the ultimate goal of transitioning from renting to homeownership.
How does the equity-building process work?
- A portion of the tenant’s monthly rent payments is allocated toward building equity in the property, which will be used later towards the purchase of the home.
Can anyone participate in a Tenant-First Rent-to-Own program?
- Eligibility criteria vary, but generally, individuals with stable income, good rental history, a commitment to homeownership, and sufficient deposit can participate. Credit requirements tend to be more flexible compared to traditional mortgages.
What is the advantage of a Tenant-First Rent-to-Own program over traditional renting?
- The main advantage is the opportunity to build equity while renting. Traditional renting typically does not offer this benefit.
How long does the Rent-to-Own process take?
- The duration of a Tenant-First Rent-to-Own program varies. It can range from a few years to a more extended period. The timeline is often flexible and typically depends on the tenant’s financial goals.
Is a down payment required for a Tenant-First Rent-to-Own program?
- The application fee of $500 is a show of good faith on the part of the tenant, which goes towards the initial deposit of $20,000 or 3-5% of the purchase price of the home. This initial deposit will go towards the down payment for the home at the end of the rental period.
Can I choose any property for the Rent-to-Own program?
- Tenants typically have the flexibility to choose a home that suits their needs but may be limited by what their financial situation can accommodate.
Who is responsible for maintenance of the property during the rental term?
- The tenant is responsible for all maintenance and repairs to the property, including any initial repairs that are needed following the home inspection.
How does credit assistance work in a Tenant-First Rent-to-Own program?
- A mortgage broker or credit repair specialist typically provides tenants with strategies to improve their credit scores over time.
Who pays for the home inspection?
- The tenant is responsible for the cost of the home inspection.
Who pays for the property taxes?
- Eagles Wings Dream Homes pays for the property taxes during the rental term but after the tenant purchases the property, they will be responsible for the property taxes.
Who pays for property insurance?
- During the rental term, Eagles Wings Dream Homes is responsible for property insurance but the tenant is required to have renters insurance.
Who pays for utilities?
- The tenant is responsible for all utilities including heat, water, gas, and any other utilities that are needed.
What happens if I decide not to purchase the home?
- The program is intended for tenants to purchase the home at the end of the rental term, however, tenants are not obligated to purchase the home. If they choose not to buy, they can continue renting or explore other housing options, but depending on the circumstances, they run the risk of forfeiting their non-refundable initial deposit and any rent credit that they accumulated over the rental period.
Is the Rent-to-Own agreement legally binding?
- Yes, a Tenant-First Rent-to-Own agreement is a legally binding contract. It is important to thoroughly review and understand the terms and conditions before entering into the agreement.
Can I sell the property before completing the Rent-to-Own program?
- In most cases, the terms of the program require tenants to complete the Rent-to-Own process before selling the property. Early sale may have financial implications outlined in the agreement.
Who will see my personal information?
- The tenant’s personal information will only be seen by the person reviewing the application, the mortgage broker and/or credit specialist.
How can I learn more about this Tenant-First Rent-to-Own program?
- Complete the application form or contact us for more information.
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