We often get calls from Renters who are ready to purchase their first home but have been turned down for a mortgage. Sometimes they ask about Rent-To-Own programs.
AHP (American Housing Project) specializes in these creative programs. I asked Bryan Beal to explain the concept.
What is Rent-To-Own?
"Rent/lease to own is a great option for Renters with the intention to eventually buy. You pick the home you like and we will purchase it. We cover the down payment and all of the financial details. You’ll be able to move into the home once we’ve purchased it and have the option to buy it back from us over time, at your own pace. Best of all 10% of whatever you pay us while “renting” the home from us is credited back towards the purchase when you’re ready.
For example if you are paying $1000/month in "rent" you might be accumulating $100/month or $1,200/year toward your downpayment when you are ready to buy it back from us. That’s the AHP way to help our customers be successful in their transition to home ownership!"
Who are the Ideal Candidates for this program?
"We're willing to work with anyone that may have trouble buying a home. We'll assess each individual situation and design the plan that best serves the Renter. There is no cookie-cutter solution to this process."
Why not just keep renting until I can afford to buy?
"For some people, renting is the best option. But for others, spending money on rent every month feels like throwing their money away. Rent does not build equity or provide you with any future benefit. With our Rent/lease to own program you will be saving downpayment money just by paying your "rent" each month. We credit 10% at the end of your term. That's valuable capital that you can apply to toward buying the home when you are ready. And you get to live a home that your chose."
When I heard about Bryan Beal's concept, my initial thought was that it is very different from other Lease Purchase and Land Contract programs that I have seen advertised. Usually an owner will offer an option to purchase or creative financing on a home they already own. Often these properties have problems or the seller is asking more than the property is worth.
AHP actually encourages the tenant to find the home they love and one they eventually want to purchase.
As with any type of real estate transaction you should always consult with your trusted advisors to help you evaluate the transaction. That might include your accountant, attorney, real estate agent, home inspector and others.
You can contact Bryan Beal at:
American Housing Project