Rent to Own Reality
Welcome to R.T.O Reality.
Helping you achieve your dream while building your equity
The dream of home ownership is all too often limited to the wealthy. The combined challenges of maintaining a high credit score, building a down payment and establishing a solid history of income. When it's time to secure your financing, most banks want you to have between 5 and 20 percent of the purchase price to put down. If your credit score isn't high enough, though, you often have to resort to using private lenders. The interest rate is a bit higher, though, and you have to come up with a down payment that is at least 25 or 30 percent of the purchase price.
But what if you can't squirrel away that much to put down? And what if your credit isn't quite ready to buy a home? This is where RTO Reality steps in. For years, people have been using rent-to-own contracts to move from being tenants to being homeowners. However, if you look at the listings of available homes in any community, the rent-to-own listings are generally the smallest. The reason for this is that most people looking to rent homes out are looking for long-term income from the leases, so they don't want to transfer ownership over. Also, figuring out rent credits is often an issue. Finally, many sellers simply don't want to deal with purchasers with poor credit, and living in a rent-to-own arrangement can lead to tension, particularly if the buyer does not qualify for financing at the end of the lease.
RTO Reality's lease option program solves all of these issues. If you are looking to move into home ownership, but you don't have much set aside as a down payment and your credit is poor, you can still apply for our program. With the RTO Reality program, any home that is available for sale can be your rent-to-own gateway to home ownership.
How does it work? The process begins when you fill out an application for our program. Then, one of our realtors will help you find the home that you want to buy; after you've made your choice, our realtors negotiate the purchase price. RTO Reality actually buys the house and turns around and leases it to you. You put down a 5 percent consideration deposit for the purchase price of the home, and then you start paying rent when you move in. As much as 20 percent of your rent is credited toward your purchase — as well as your consideration deposit. The term of the lease varies, although most people choose terms between two and four years.
While you are fulfilling your lease, one of our credit repair specialists works with you on an individualized plan to get your score to the point where you can qualify for bank financing when your lease comes to an end. That way, you are prepared to purchase the home of your dreams — and you've already been able to live there for several years.
If you think that the RTO Reality program would work well for you, get in touch with one of our specialists today. We will put together an individualized plan so that you can achieve your dream of owning a home sooner than you think!