Frequently Asked Questions
Frequently Asked Questions by Buyers
Frequently Asked Questions by Sellers
General
What is the difference between
Rent To Own, Lease Option, Lease Purchase, Rent to
Buy, Owner Financing, and
Land Contract?
(Back to Top)
iRentToOwn specializes in Lease Option transactions, also known as Rent To Own,
or Rent to Buy transactions. In a Lease Option, the Landlord-Seller
leases the home to the Tenant-Buyer and the Tenant-Buyer has the
option to purchase the home for a pre-determined price at any point prior to the
end of the lease. The main components of a Lease Option transaction are
the lease term, the purchase price, the down payment, and the rent credit.
Lease Purchase transactions are similar to Lease Options; however,
rather than granting the Tenant-Buyer the option to purchase the home,
Lease Purchases contractually obligate the Tenant-Buyer to purchase
the home.
“Owner Financing” agreements and “Land Contracts” have similar
payment schedules to that of Lease Options and Lease Purchases; however, these agreements
enable the Buyer to purchase the home and obtain title at the beginning of the transaction.
The Seller, instead of receiving a large cash payment at the time of purchase, as
he/she would in a conventional sale, serves as a lender for the remainder of the
agreement, and collects monthly financing payments from the Buyer. When the Owner
Financing agreement or Land Contract expires, the Buyer obtains
third-party mortgage financing and fully repays the Seller Loan.
iRentToOwn is the nation’s largest marketplace for Rent To Own real estate,
setting the standard for residential lease option transactions. The highlights of
our program include the
Signature Preparation Program,
the
Select Preparation Program and the
HomeOwner Program. iRentToOwn has developed the industry’s first standardized
transaction structure and legal agreement, facilitating fair transactions that create
value for Buyers, Sellers, and Agents. We ensure a high purchase rate by rigorously
qualifying Buyers and providing them with the support and resources to achieve their
savings and credit improvement objectives.
In California
iRentToOwn is a full service brokerage with active memberships in various local
Realtor Association Boards in Northern and Southern California. We have access to
tens of thousands of homes across the state, and work with agents to provide their
sellers with alternative solutions to traditional sales. Additionally, we work with
California sellers to help market their homes on the MLS as a Rent To Own listing.
Nationwide
We provide Sellers with a platform to Advertise Their Rent
To Own Homes to a large audience of nationwide Buyers. Not until now has
a single website combined simplicity and transaction flexibility with such a remarkable
volume of both Buyers and Sellers of Rent To Own homes. Due to high consumer demand,
we are continuing to position the business for nationwide expansion.
What are the benefits of Rent To Own versus other methods of purchasing a home?
(Back to Top)
Please see our
Benefits page to read about the benefits
of Rent To Own.
Sellers generally include homeowners who list their property with iRentToOwn, real
estate agents/brokers looking to increase exposure for a home they are representing,
property managers, real estate investors, and Rent To Own firms that provide Buyer
assistance. Sellers nationwide are also welcomed and encouraged to advertise their
homes on iRentToOwn.com. You must be an owner or a legal representative of an owner
to advertise a home on iRentToOwn.com.
iRentToOwn is committed to helping anyone achieve the dream of homeownership. iRentToOwn’s
experienced professionals help aspiring homeowners of various financial situations
to set realistic objectives and then provide them with the necessary support to
achieve those objectives. A typical candidate needs time to improve his or her financial
profile over the lease term in order to secure an affordable mortgage.
The concept is not new. Buyers and Sellers have been structuring Rent To Own transactions
for decades. However, iRentToOwn’s model is unique. Not only have we developed the
industry’s first standardized transaction structure and legal agreement, our rigorous
qualification system and Buyer support programs ensure a high purchase rate. Recent
housing market conditions have put the spotlight on Rent To Own transactions. The
number of Buyers and Sellers will continue to grow rapidly as consumers become more
aware of the Benefits of a Rent To Own.
What are the details of a sample Rent To Own transaction?.
(Back to Top)
A Rent Credit is the portion of the monthly rent that is credited towards
the purchase price of the home at the end of the transaction. At iRentToOwn, the
monthly rent credit payments accumulate in an escrow account until the Buyer exercises
his purchase option. The use of an escrow account for this purpose is extremely
rare in the Rent To Own industry and provides Buyers with critical protection against
a Seller default.
What are the components of a Rent To Own agreement?
(Back to Top)
There are two major components of a Rent To Own agreement: 1) a Lease that includes
the monthly payment, term, rent credit and other customary provisions, and 2) the
Purchase Option, which grants the Tenant-Buyer the option to purchase the
home at an agreed upon price at any point prior to the expiration of the lease.
iRentToOwn facilitates successful transactions by standardizing lease terms, rigorously
qualifying Buyers and Sellers, and providing Buyers with the support and resources
to achieve their savings and credit improvement objectives.
Who pays the real estate taxes and homeowner insurance on the Rent To Own?
(Back to Top)
Taxes and homeowner insurance are paid by the Seller of a Rent To Own until the
Tenant-Buyer completes the purchase.
Simply follow this
Banner Link
for a full display of the banner options we provide our customers; thank you in
advance for taking the time to link to our website! There are many discounts and
account upgrade opportunities for those that do link to our website.
I'm on your email mailing list and I do not want to be contacted anymore. How do
I remove my email from distribution and stop receiving messages?
(Back to Top)
I want to advertise my business on iRentToOwn.com, how do I do that?
(Back to Top)
Please see our
Contact Us page. We pride ourselves on being
highly responsive to all queries.
Buyers
Why should buyers Rent To Own versus simply renting or buying immediately? (Back
to Top)
Please see our
Benefits page to read about the benefits
of Rent To Own.
I am a Buyer, how much does your website cost to use?
(Back to Top)
What type of potential Buyers choose the Rent To Own method?
(Back to Top)
Potential Buyers have historically included the following:
- Families who want to improve their financial profile (i.e. save more money and restore
any credit problems) over the course of a lease in order to obtain an affordable
mortgage at the end of the lease
- Families with impaired credit who are presently unable to qualify for suitable mortgage
rates due to credit issues
- Families who want to try out a home, neighborhood, or school district before committing
to it long-term
- Families who are tired of renting and want to take positive steps towards home ownership
- Real estate investors
How can I ensure that my credit improves enough to obtain a mortgage by the time
my Rent To Own agreement concludes?
(Back to Top)
iRentToOwn has various programs designed to help you improve your financial profile
over the course of your Rent To Own lease. Depending on your specific needs, iRentToOwn
will work with you in setting up a strong buyer profile. By offering our
Signature Preparation Program and our
Select Preparation
Program which include customized credit restoration and monitoring systems
matched with our leading Smart Path to HomeOwnership program, iRentToOwn prepares
buyers to execute a successful home purchase. We pride ourselves on Turning Tenants
into HomeOwners.
Do I have to buy the house at the end of the lease?
(Back to Top)
No. The seller will grant you the option to purchase the home, but the decision
to purchase is entirely up to you. In fact, the opportunity to “try before you buy”
is one of the many benefits of Renting To Own.
Will my down payment be returned to me if I do not purchase the home at the end
of the lease?
(Back
to Top)
Your down payment is non-refundable. If you do not execute your purchase option,
this money will not be returned to you.
Will my monthly rent credits be returned to me if I do not purchase the home at
the end of the lease?
(Back
to Top)
Your monthly rent credits accumulate in an escrow account, and are fully-refundable.
If you choose not to purchase the home at the end of the lease, your full rent credit
will be returned to you.
Is every home on the website a guaranteed Rent To Own Home?
(Back to Top)
Since iRentToOwn locates home inventory from across the country through a variety
of methods, not every home is guaranteed to be a Rent To Own opportunity.
Sellers
Currently, MLS listings are available for homes in the state of California. Sellers
from other states can advertise their homes on our site for exposure to thousands
of potential Tenant-Buyers. Due to the demand for our system, we aim to expand our
brokerage services nationwide in the near future.
Will iRentToOwn Realtors advertise and market my home for sale as well as Rent To
Own?
(Back to
Top)
In the state of California we offer full brokerage services and will market your
home for sale and for Rent To Own unless you specify otherwise. We have two listing
options 1. The MLS flat fee listing or 2. The full service listing, please
Contact Us with your inquiry and our agents will contact you to answer all
questions.
How long does my Rent To Own listing remain on your website?
(Back to Top)
The length your advertisement will typically remain on the site for 90 days. The
length of California listings is determined by the listing agreement.
We have Buyers representing all 50 United States.
Landlord-Sellers receive monthly above-market rental payments during the lease term.
When the Tenant-Buyer executes the purchase option, the Landlord-Seller receives
a payment equal to the pre-determined purchase price, less any applicable mortgage
repayments, realty commissions, and other transaction costs.