Frequently Asked Questions
The process of Rent to Own in Utah is the same as buying a house with traditional financing. You first have to establish a “credit package” and determine any issues keeping you from getting traditional financing.
If your credit is not ready for underwriting then you simply enter the 24 Month Success Program where you will have time to resolve any remaining issues keeping you from getting financing. Either way you must start an application to get into a home.
What are the minimum Down Payment requirements to buy a Rent to Own Utah Home?
We do not set “minimum” down payment requirements to buy a Rent to Own Utah home, the lenders do! If your goal is to actually OWN your home you will need to have the minimum down payment to qualify for traditional financing. Here are some examples of down payment requirements:
FHA – 3.5% of the Home’s Purchase Price ($10,500 on a $300,000 home)
Conventional – 5% – 10% of the Home’s Purchase Price ($10,000 on a $200,000 home) and up to ($20,000 on a $200,000 home)
Owner Financing – 10% or more of the Home’s Purchase Price ($20,000 on a $200,000 home) and can be more depending on the situation
Putting more money down ultimately increases YOUR financing options. If you are unable to meet the minimum 3.5% today to qualify for FHA financing we can usually spread out the difference between what you have now and the remainder over the first year of the rent to own or lease option agreement.
How Long is the Rent to Own or Lease Option Agreement?
Your Credit Package will determine how long the Rent to Own or Lease Option Agreement will extend. The better your credit the shorter the term.
Why do you want a shorter term? Because of the HUGE tax benefits that come when you can get traditional financing and own your own home!
To find out exactly how long your term will need to be Apply Today!
I have bad credit – Can I still qualify to buy a Rent to Own Utah Home?
Even if you have bad credit you can still qualify to buy a Rent to Own Utah Home! The status of your credit will determine the term (length) of the lease option period.
Does the monthly payment go toward the purchase price when buying a Rent to Own Utah Home?
Sometimes a portion of the monthly may go to the purchase price when buying a Rent to Own Utah Home. Every home and the available terms are different. However, as a good rule of thumb, any amounts you pay in excess of the lease rate on a monthly basis will go toward the purchase price of the home.
Does the monthly payment go to the homeowner when I Rent to Own in Utah?
Your monthly payment does NOT go the homeowner when you Rent to Own in Utah. Rent to Own Utah Homes ALWAYS structures the monthly payment to be safely and securely handled by a third party escrow company. This protects both parties from a bad rent to own or lease option scenario.
How do I qualify to buy a Rent to Own Utah Home?
Qualifying to buy a Rent to Own Utah Home is easy. You start by completing a basic mortgage application.
From there we will start your credit package to determine the requirements needed for you to successfully buy your home. After you’ve signed a Buyer Broker agreement to have us represent you, you may start shopping for your new Rent to Own Utah Home from the hundreds of properties in the available inventory.
Contact Mike & Lisa today to get started 801-708-3513