How do I qualify?
We have a relatively simple process, but we do require certain basic information from you. Our current minimum qualifying standard is an averaged credit score of 580 for the applicants signing the lease/purchase agreement. Also, we look at your income from all sources to determine affordability. The up front cost is only $50 per applicant to cover our cost of a credit and criminal background check. Your move in cost is equal to 2 months of payments. One is your initiation fee, which goes into your "purchase credit" balance, and the other is your first month's rent.
How do I know if the house will qualify?
We work directly with you all through the process. Our basic parameters are that we only do Single Family Detached Homes with a minimum of 3 bedrooms 2 baths and on less than 5 acres. We also need to inspect the home to verify the home's quality and value. We need to verify that the price to be paid is within a certain range of it's appraised value. This is not only for our investor's protection, but yours as well. We have other internal metrics we use which help us and you estimate the potential future value of the home. So if we decline the home in the first go round, remember that you may have already qualified and we can look for another home. On occasion this might be a bit frustrating, but it's for your protection as well.
What price range of home can I buy?
Currently our primary range is from $75,000 to $400,000. We will look at each prospective deal outside this range if there are extenuating circumstances.
We have a relatively simple process, but we do require certain basic information from you. Our current minimum qualifying standard is an averaged credit score of 580 for the applicants signing the lease/purchase agreement. Also, we look at your income from all sources to determine affordability. The up front cost is only $50 per applicant to cover our cost of a credit and criminal background check. Your move in cost is equal to 2 months of payments. One is your initiation fee, which goes into your "purchase credit" balance, and the other is your first month's rent.
How do I know if the house will qualify?
We work directly with you all through the process. Our basic parameters are that we only do Single Family Detached Homes with a minimum of 3 bedrooms 2 baths and on less than 5 acres. We also need to inspect the home to verify the home's quality and value. We need to verify that the price to be paid is within a certain range of it's appraised value. This is not only for our investor's protection, but yours as well. We have other internal metrics we use which help us and you estimate the potential future value of the home. So if we decline the home in the first go round, remember that you may have already qualified and we can look for another home. On occasion this might be a bit frustrating, but it's for your protection as well.
What price range of home can I buy?
Currently our primary range is from $75,000 to $400,000. We will look at each prospective deal outside this range if there are extenuating circumstances.
What if the home needs some work?
In most cases homes do require some repairs or upgrades. This is one of the reasons we work with you and licensed inspectors so that you are fully aware of any issues with the home. For example, if our inspectors determined the home has serious structural issues or perhaps termite damage, it's likely best to look for another home. We pay for the inspection up front and upon closing it is added to the total price of the home. If you don't close on that particular home, we bear the cost and we help you find a different home.
The home we like has a pool, does Ren2Home buy homes with a pool?
No, unfortunately at this time we do not allow for pool homes.
Who's responsibility is it to pay for repairs, and insurance?
Ren2Home pays to insure the value of the home for our investors in the event of damage to the home in case fire and/or some catastrophic event, however we encourage each buyer to keep and hold a "Renter's Insurance" policy to cover your belongings. When it comes to repairs, that responsibility lies on the buyer, just as if you already owned the home. We do encourage you to investigate the various home warranties available, but at this time we do not recommend a specific company. This is one of the reasons we attempt to do a thorough investigation of the home prior to move in.
What happens if a major repair is required and I can't afford to fix it?
We handle these situations on a case by case basis and work with you always. Remember, our goal is to help you be the ultimate owner of the home. Also, we want each of our customers to live in a safe and comfortable home for you and your Family. As an example, if you have been in the home for 3 years and your Air Conditioner goes out and the only way to fix it is to replace it with a new one. We could run a few scenarios with you to see what works best. Regardless, we understand that things do happen and would work with the customer to resolve the situation in a way that benefits the customer and the investors alike.
What if I want to sell the home?
That works too! While the program was initially designed for buyers to work on credit issues and improve your numbers and savings to eventually qualify for a mortgage to exercise the purchase option; we do realize there are a number of scenarios where it might make sense to simply sell the home. In this case we act as your listing agent through our Realtor network and charge a commission.
For example, let's say you bought the house for $175,000 and in the next few years the area had grown substantially making the value well over $200,000. Assuming you are in year 3, your purchase option would exercise at $188,456, and you would also have accumulated around $7,000 in your Purchase Credits. In this scenario, you would walk away from the closing table with a tidy profit and our investors in the fund would be paid off and be ready to invest in another home.
My last landlord did not report my good payment history to the credit bureaus, do you?
Yes we do! That is a common frustration of many excellent rental tenants that may have had credit issues to work through. Even when they have made timely payments, in some cases for years, they get no benefit on their credit scores. Remember, our goal is to make it easier, not harder to qualify for a mortgage. The program is designed as a helpful path, not a negative experience.
What happens if I stop paying my monthly rent?
We encourage each customer to pay their rent on time and communicate with us if there is a known problem on the horizon. We do not want to evict any tenant, and it is always costly to both parties. But in the event you don't pay and we don't have any reason to see a resolution offered by you, we will enforce all the terms of our agreement. Please consider that our investor's are taking the risk and investing in the home that you have chosen and it is our fiduciary responsibility to protect their investment. If you do see a problem coming and you let us know, perhaps an option for you would be to sell the home. Again, communication is paramount! If we know there is a problem, we can try to help resolve it. The worst case scenario for you is when we hear nothing and payments stop coming in. In these cases we will work aggressively to resolve the matter and liquidate the home as quickly as possible based on the terms of our agreement.
Can I make improvements to the home?
Yes, But! We are happy to work with you if you want to make improvements to the home. For small items, such as paint or carpeting and other non-structural items, you don't even need to ask us. However, any repair that would require a permit will require our permission and must be performed by a licensed individual and/or company. Again, this is not only for the investor's protection, but also for yours. Please be very careful when looking for work to be done on the home. Try to get referrals, past client's recommendation and even see other work they have done prior to agreeing to anything. Also, be very careful not to commit to paying in full up front when work is to begin.
What if I get my credit in order 2 months after I buy the home with Ren2Home and want to go ahead and close?
That's fine! You can exercise the purchase option at any time. In fact we will encourage each customer to make plans from day one for the ultimate goal of obtaining a mortgage and purchasing the home. Remember, our program is designed as a step to make you the homeowner, so whenever you exercise is fine with us and we encourage each customer not to procrastinate or wait until the end of the 4th year to begin the process. As your proposed purchase date approaches remember to give us at least 30 days notice.
I have a Realtor that I like, can I use them with the Ren2Home model?
Yes, but you need to make them aware of how we work. There are a number of ways to find available homes locally and online, and we are happy to work with any Real Estate professionals, but in fairness to that person, please advise them that WE are purchaser of the home.
Does Ren2Home do credit counseling?
No! This is not our function, but we encourage anyone to seek professional advice when they need it. At Ren2Home, we believe in the individual and there are a multitude of free services and plenty of common sense articles to give anyone the tools they need to manage personal finances. It may make sense in some cases to monitor your credit report monthly, especially several months out from planning a search for a suitable mortgage. We don't endorse any particular company or service and there are a number of free options available.
The home I want to buy is in an HOA (Home Owners Association), is that OK?
Many homes are in HOA's and it is critical to understand what the governing documents dictate very early in the process. If the expenses of the HOA are too high, that fact alone might make any home in that subdivision unworkable. Also, some HOA's do not allow rentals, so some may not allow us to buy the home and do a lease/purchase agreement with you. For this reason, when you look at homes it is very important to understand what limitations are dictated in these areas. The more informed you are about the area and any governing rules, the faster and simpler the process will be. We will cover HOA fees of up to .2% of the purchase price of the home, and above that it will be added to your monthly payment. So for a $175,000 home, we would pay up to $350 per year and any cost above that would be borne by you.
I have pets, do you allow me to move in with family pets and is there any additional deposit required?
Yes, we do allow you to have pets and we do not charge an additional deposit for them. Just another way we strive to be different from a traditional landlord since your intent is the buy the home. However, in most cases HOA rules and local zoning rules typically restrict what type of pets are allowed. For example, some communities in rural areas may allow horses, while some HOA's may restrict the size and number of small pets. In certain cases our insurance provider may restrict certain breeds or types of pets as well. In all cases, the more upfront you are with us during the initial application the faster we can get you in your home.
What happens if I am approaching the end of the 5 year term and can't exercise the option?
This is clearly not the ideal scenario! However, for our Clients and our Investors we prefer a successful transaction. In this unique situation we will consider, on a case by case basis, extending the contract for an additional year. After a careful examination of the track record of payments, and other factors regarding the history of the account, we will make that determination. During this 1 year extension we will require you to show that you have applied for a mortgage to purchase the home and been denied. Also, we will list the home for sale and provide you with a first right of refusal to complete the purchase in the event that a suitable offer is received. Under this scenario, we will ask a price above the option exercise price and would return your Purchase Credits balance to you upon closing based on terms of the agreement.
In most cases homes do require some repairs or upgrades. This is one of the reasons we work with you and licensed inspectors so that you are fully aware of any issues with the home. For example, if our inspectors determined the home has serious structural issues or perhaps termite damage, it's likely best to look for another home. We pay for the inspection up front and upon closing it is added to the total price of the home. If you don't close on that particular home, we bear the cost and we help you find a different home.
The home we like has a pool, does Ren2Home buy homes with a pool?
No, unfortunately at this time we do not allow for pool homes.
Who's responsibility is it to pay for repairs, and insurance?
Ren2Home pays to insure the value of the home for our investors in the event of damage to the home in case fire and/or some catastrophic event, however we encourage each buyer to keep and hold a "Renter's Insurance" policy to cover your belongings. When it comes to repairs, that responsibility lies on the buyer, just as if you already owned the home. We do encourage you to investigate the various home warranties available, but at this time we do not recommend a specific company. This is one of the reasons we attempt to do a thorough investigation of the home prior to move in.
What happens if a major repair is required and I can't afford to fix it?
We handle these situations on a case by case basis and work with you always. Remember, our goal is to help you be the ultimate owner of the home. Also, we want each of our customers to live in a safe and comfortable home for you and your Family. As an example, if you have been in the home for 3 years and your Air Conditioner goes out and the only way to fix it is to replace it with a new one. We could run a few scenarios with you to see what works best. Regardless, we understand that things do happen and would work with the customer to resolve the situation in a way that benefits the customer and the investors alike.
What if I want to sell the home?
That works too! While the program was initially designed for buyers to work on credit issues and improve your numbers and savings to eventually qualify for a mortgage to exercise the purchase option; we do realize there are a number of scenarios where it might make sense to simply sell the home. In this case we act as your listing agent through our Realtor network and charge a commission.
For example, let's say you bought the house for $175,000 and in the next few years the area had grown substantially making the value well over $200,000. Assuming you are in year 3, your purchase option would exercise at $188,456, and you would also have accumulated around $7,000 in your Purchase Credits. In this scenario, you would walk away from the closing table with a tidy profit and our investors in the fund would be paid off and be ready to invest in another home.
My last landlord did not report my good payment history to the credit bureaus, do you?
Yes we do! That is a common frustration of many excellent rental tenants that may have had credit issues to work through. Even when they have made timely payments, in some cases for years, they get no benefit on their credit scores. Remember, our goal is to make it easier, not harder to qualify for a mortgage. The program is designed as a helpful path, not a negative experience.
What happens if I stop paying my monthly rent?
We encourage each customer to pay their rent on time and communicate with us if there is a known problem on the horizon. We do not want to evict any tenant, and it is always costly to both parties. But in the event you don't pay and we don't have any reason to see a resolution offered by you, we will enforce all the terms of our agreement. Please consider that our investor's are taking the risk and investing in the home that you have chosen and it is our fiduciary responsibility to protect their investment. If you do see a problem coming and you let us know, perhaps an option for you would be to sell the home. Again, communication is paramount! If we know there is a problem, we can try to help resolve it. The worst case scenario for you is when we hear nothing and payments stop coming in. In these cases we will work aggressively to resolve the matter and liquidate the home as quickly as possible based on the terms of our agreement.
Can I make improvements to the home?
Yes, But! We are happy to work with you if you want to make improvements to the home. For small items, such as paint or carpeting and other non-structural items, you don't even need to ask us. However, any repair that would require a permit will require our permission and must be performed by a licensed individual and/or company. Again, this is not only for the investor's protection, but also for yours. Please be very careful when looking for work to be done on the home. Try to get referrals, past client's recommendation and even see other work they have done prior to agreeing to anything. Also, be very careful not to commit to paying in full up front when work is to begin.
What if I get my credit in order 2 months after I buy the home with Ren2Home and want to go ahead and close?
That's fine! You can exercise the purchase option at any time. In fact we will encourage each customer to make plans from day one for the ultimate goal of obtaining a mortgage and purchasing the home. Remember, our program is designed as a step to make you the homeowner, so whenever you exercise is fine with us and we encourage each customer not to procrastinate or wait until the end of the 4th year to begin the process. As your proposed purchase date approaches remember to give us at least 30 days notice.
I have a Realtor that I like, can I use them with the Ren2Home model?
Yes, but you need to make them aware of how we work. There are a number of ways to find available homes locally and online, and we are happy to work with any Real Estate professionals, but in fairness to that person, please advise them that WE are purchaser of the home.
Does Ren2Home do credit counseling?
No! This is not our function, but we encourage anyone to seek professional advice when they need it. At Ren2Home, we believe in the individual and there are a multitude of free services and plenty of common sense articles to give anyone the tools they need to manage personal finances. It may make sense in some cases to monitor your credit report monthly, especially several months out from planning a search for a suitable mortgage. We don't endorse any particular company or service and there are a number of free options available.
The home I want to buy is in an HOA (Home Owners Association), is that OK?
Many homes are in HOA's and it is critical to understand what the governing documents dictate very early in the process. If the expenses of the HOA are too high, that fact alone might make any home in that subdivision unworkable. Also, some HOA's do not allow rentals, so some may not allow us to buy the home and do a lease/purchase agreement with you. For this reason, when you look at homes it is very important to understand what limitations are dictated in these areas. The more informed you are about the area and any governing rules, the faster and simpler the process will be. We will cover HOA fees of up to .2% of the purchase price of the home, and above that it will be added to your monthly payment. So for a $175,000 home, we would pay up to $350 per year and any cost above that would be borne by you.
I have pets, do you allow me to move in with family pets and is there any additional deposit required?
Yes, we do allow you to have pets and we do not charge an additional deposit for them. Just another way we strive to be different from a traditional landlord since your intent is the buy the home. However, in most cases HOA rules and local zoning rules typically restrict what type of pets are allowed. For example, some communities in rural areas may allow horses, while some HOA's may restrict the size and number of small pets. In certain cases our insurance provider may restrict certain breeds or types of pets as well. In all cases, the more upfront you are with us during the initial application the faster we can get you in your home.
What happens if I am approaching the end of the 5 year term and can't exercise the option?
This is clearly not the ideal scenario! However, for our Clients and our Investors we prefer a successful transaction. In this unique situation we will consider, on a case by case basis, extending the contract for an additional year. After a careful examination of the track record of payments, and other factors regarding the history of the account, we will make that determination. During this 1 year extension we will require you to show that you have applied for a mortgage to purchase the home and been denied. Also, we will list the home for sale and provide you with a first right of refusal to complete the purchase in the event that a suitable offer is received. Under this scenario, we will ask a price above the option exercise price and would return your Purchase Credits balance to you upon closing based on terms of the agreement.
