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Would a Rent to own Option be right for you?

By
Real Estate Agent with EXP Realty

Would a Rent to own Option be right for you?

Heidi Herda Realtor - eXp Realty - Relocation Specialist - 612-807-4858

Homeownership is a dream for many, but it can seem out of reach for some. Whether you don't have a full downpayment, your credit score isn't high enough, or you simply just don't qualify, it can be discouraging. But don't lose hope! There are options available to help you achieve your dream of owning a home.

Let me introduce you to a program called Divvy! Sign me up, I'm ready to be a homeowner!!!

Rent to own homes

Rent to Own

One option to consider is rent to own. This allows you to rent a home with the option to buy it at the end of the lease, but this isn't your traditional rent to own... Divvy will purchase a home for cash on your behalf. 

You can move in and paint and do the things that you would love to do if you "owned" it! You would have a downpayment (or earnest money) similar to a traditional home purchase.

However, as you make your rental payments you also have the option to add a little here and there to your rental payment as a savings account! This money is gaining interest for you while you rent, if you chose to purchase the home, you can! You will know upfront what Divvy is expecting you to pay in the years to come. 

If you don't want to buy it, you still had the "try before you buy" advantage! If you contributed to the savings account, you may have 5% down ready to purchase a home. This is a great way to build wealth not only for you but your loved ones in the future.

Build Wealth Through Homeownership

Owning a home can also be a way to build wealth over time. As you make mortgage payments, you are building equity in your home, which can increase in value over time. With Divvy, if the home appreciates faster than the outlined purchase schedule... guess, what, they cash you out and you get to keep the overages! Maybe you love the home, but ultimately decide to take the 5% you have been saving PLUS, any equity gained from the market and buy a different home, that will put you that much further ahead in building wealth through homeownership. This can result in a significant return on investment when it comes time to sell the next home.

Homeownership Assistance

This isn't considered downpayment assistance, this would be you taking a big step toward homeownership wealth, stability, and generational wealth for your loved ones. You can either purchase the home you rent or decide the next move might be a better fit for you. With a minimum credit score of 550, you can get into a home, if your score is above 650 but other factors may make it difficult to purchase a home, this is a lower-cost way to get your foot in the homeownership door. If you're ready to take the next step, reach out to me, and let's get you approved!!

Don't Give Up

Reach out to me if you're interested in applying for Divvy Homeownership. I also have resources for downpayment assistance. Additionally, working with a knowledgeable real estate agent can help you navigate the home-buying process the traditional way if that's a better fit for you.

In conclusion, homeownership may seem out of reach, but there are options available to help you achieve your dream. Rent to own, building wealth through homeownership, and homeownership assistance programs are just a few of the many options available. Don't let a lack of a full downpayment, a low credit score, or not qualifying for a traditional mortgage hold you back from achieving your dream of owning a home. With some research and the right support, you can make it happen. Let us know how we can help you meet your goals of homeownership! Heidi@HerdahomeTeam.com 612-807-4858

If you're planning to relocate to Minnesota and need more of a deeper dive into the areas that will work best for you. Please reach out! Minnesota is a great place to call home! Check out more resources here!

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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Heidi, great post for those who cannot jump right in and buy a property outright.

May 04, 2023 08:44 AM
Kevin Vitali
EXIT Realty Beatrice Associates - Middleton, MA
Helping Massachusetts Home Buyers and Home Sellers

Not a huge fan of rent to own.  It certainly benefits the seller way more than the potential tenant/ buyer.  If a buyer goes that route get a great attorney to make the contract fair for both the buyer and the seller.  

May 04, 2023 02:50 PM