Frequently Asked Questions
General questions about our company, service, and properties we offer on this website:
- What does Rent to Own actually mean?
- What is the Rent to Own process?
- Do appliances or furniture come with a rent-to-own home?
- What if I have bad credit? Can I still get a rent-to-own home?
- Is there a down payment on a rent to own home?
- What are the benefits of a rent to own home?
- What are the requirements of a rent to own arrangement?
What does Rent to Own actually mean?
In most cases, a rent to own agreement is a contract on a property that works like a lease and leads to a purchase. It’s often called a lease with an option – or a lease/option agreement for short.
The lease portion is a standard rental agreement that includes monthly rent, security deposit, and other typical terms.
The option in the contract gives you the right to purchase the property after a set time period – usually around 3 years. This gives you the ability to save money towards a down payment, repair credit, increase your income, or otherwise improve your ability to qualify for a mortgage.
Most of the time people use a traditional mortgage loan to purchase the property prior to the expiration of the option period, but there are other options if your financial situation has unique needs.
We help lots of folks like you to purchase the home of their dreams.
Fill out the form below to get started on your way to home ownership!
What is the Rent to Own process?
The rent to own process is actually pretty simple.
Once you’ve submitted all of your contact information in your Rent-To-Own Buyer Profile, we’ll be sending you an email in the next day or two to connect with you and discuss your options.
If you qualify, we will send you an application to fill out. Don’t worry – we help people with all kinds of credit and financial situations, and if you can afford the property, we can probably help you to own it.
Once we verify the information you submit and, if you’re approved, you’ll be ready to shop for homes. Find the home you love and it will be purchased for you. You can choose almost any home on the market. Seriously, all you need is a 1 – 2% down payment.
While you rent your house you will be helped to save up and buy it. Part of your payment every month will go straight into savings. So you don’t have to worry about getting a down payment ready. If you ever choose not to buy the home, those savings go straight back to you, minus a re-listing fee.
As soon as you’re ready to qualify for a mortgage, you can buy your home. The program is designed to get you mortgage-ready in 3 years, but you can buy any time. If you’re ready early, it’s all yours, no penalty!
That’s the process!
Once you’ve completed your mortgage, you’re done – now you own your home!
First step – sign up to find great properties around San Antonio and surrounding areas just by filling out the form below.
Why wait to live in a home you love? Start your homeownership journey today!
Do appliances or furniture come with a rent-to-own home?
Most of the time, furniture isn’t included with a lease/option purchase.
Generally, the basic appliances are there – like a refrigerator, stove, oven, and sometimes extras, like a dishwasher, a washer, and a dryer. Parts of a property that are installed or attached – like the heating system and air conditioning – are definitely included.
Sometimes, we’ll offer a property that includes some furnishings. Most buyers want to bring their own stuff with them from their previous home, and that’s why furniture is sold separately.
There are many companies out there that provide a rent-to-own service for furniture or extra appliances, and you’ll get lots of choices on styles and types.
But be careful!
Even though rent-to-own real estate can be a great deal, some (not-so-honest) furniture companies will charge you huge amounts for a rent-to-own agreement. You might end up paying 2-3x more for these products than if you bought them outright.
Plus, those appliances will probably go down in value – unlike real estate, which usually goes up in value.
Of course, you want your money to be going to an asset (like your home) that will rise in value, not expensive interest payments on new furniture.
So don’t wait! Fill out the form at the bottom of this page to get started now.
What if I have bad credit? Can I still get a rent-to-own home?
Yes, you can! Many people with bad credit can still get a rent-to-own home.
Every situation is different, but we specialize in helping people who have been through tough circumstances (or just made mistakes in the past) to repair their credit and get started on the path to a great financial future.
Even if your credit is bad, you can still own a property!
One of the major benefits of a rent-to-own scenario is that it gives you time to repair your credit before you purchase your home. You’ll enjoy many of the benefits of home ownership while you’re rebuilding your credit and saving money towards a down payment.
So fill out the form at the bottom of this page now and get your piece of the American dream!
What are the benefits of a rent to own home?
There are a lot of benefits of a rent to own agreement!
In the San Antonio area, lots of smart people are using rent-to-own agreements as a way to get the home of their dreams without having to qualify for a bank loan right away.
In the past few years, banks have been very tight on their lending criteria. Most people who use a rent to own agreement want a few years to get ready to qualify.
Here are a few more reasons to use a rent-to-own agreement:
- Try before you buy! You get to live in your rented home before you actually purchase it, allowing you to make sure it’s actually your dream home. If you don’t like the house, you don’t have to complete the purchase.
- Own without great credit or a big down payment. You can start feeling like a homeowner right away while saving up and improving your credit.
- Privacy. You’re not listed as the purchaser on any public records until the closing takes place, giving you years of privacy.
- Move in fast. Since you don’t have to wait for a mortgage, you can often move in right away – and get started living a new life in the home of your dreams!
When is my down payment due?
Your down payment, or initial home savings commitment, is due 24 hours after an offer is accepted to make sure the funds clear prior to closing.
Depending on what type of payment is sent (credit card, ACH, or wire transfer), clearance for this payment may be immediate or take several business days, so keep this in mind when planning your payment. If there’s a delay in receiving the initial home savings commitment, we may not be able to close on time.
How can I apply my savings contributions to the down payment and closing costs?
Your savings in the home can be applied to your down payment (typically listed in the form of either a previously received earnest payment or a seller concession), to your closing costs or to both. The allocation of your savings to the down payment and/or closing costs may vary depending on the loan type you are using. Please discuss this allocation with your lender to ensure you have adequate funds to close.
So don’t wait! Get started now by filling out the form at the bottom of this page.
What are the requirements of a rent to own arrangement?
We know that every person, family, and situation is different.
We do our best to help you uncover creative solutions to help you own the home of your dreams.
Once you’ve had a chance to check out the house, you’ll fill out a rental application that will include detailed information on everyone living in the home. We review each application individually, but there are a few requirements our team looks for when approving applications.
All applicants need to pass a soft credit check—this won’t affect your credit score. We’ll look at your FICO score, recent loan delinquencies, and any foreclosures or bankruptcies. In some cases, a soft credit check might not provide Divvy with enough information to determine your eligibility. If this happens, we’ll reach out and explain how to move forward.
People with bad credit, no credit, limited cash available, and other financial situations have all been able to lease then purchase their perfect piece of real estate.
We look for 3 months of steady income. You’re able to add multiple income sources including self-employment. Just know that self-employed income can take a little longer to verify.
We run a background check to determine your rental history and criminal background. For criminal background checks, we evaluate the recency and severity of any convictions.
We love helping great folks to reach their dreams, so don’t be afraid – fill out the form below to get started!