How the Program Works:
What exactly do you do?
We help those good people that want to help themselves. If someone is inclined by a higher power to find a way to purchase the American dream we want to help him or her accomplish that dream. We match people with houses.
How do we help?
We allow folks to get that second or third chance even if others have given up on them. We allow you to purchase a home with no qualifying and guaranteed financing for little money down.
How much is little money down?
In most cases it is between $2,900 and $3,900. We call this an “option fee”. If you don’t have that in savings it is low enough where many times you can borrow it from your 401K, parents, family or friends. The option fee is subtracted out of the predetermined sales price.
What do you mean by no qualifying?
It is the real deal. If you have the money and a good attitude you get the house. It sounds too good to be true but it is really pretty simple. We get enough money down where even if you don’t pay as agreed it gives us cushion to get you out. Our exposure to loss is very minimal.
What do you mean by guaranteed financing?
Most of our option agreements with our resident/buyers give them the opportunity to purchase the home for a predetermined price for three years. You have an option” to purchase it for that amount of time. At any time during that three years you can get your own loan or at the end of the three years provided you have never been more than 20 days late with us we finance it for you. We put it all in writing and do what we say. Our mortgages are straight 30 year loans, with no balloons, and best of all no prepayment penalties. Our interest rates are on the high side currently at 9.75% but at least you know you can’t lose the home due to bad credit. And best of all you can always refinance if your situation improves. In fact, we work with you to get loans outside of our company as we would rather have the money and not the note.
How is your Rent-to-own program different from all the others?
There are two quick answers to this one. We strive to follow the “Golden Rule” and we also guarantee the financing. If someone is in the situation where they are participating in a “Rent-to-own” program the chances are he or she does not have good credit. To take that prospect’s option fee and then not guarantee some sort of financing is not something we could do and sleep at night. However, many do and that is why you need to deal with us and not our competitors.
Does any of my rent go toward my home purchase?
Yes – Generally we allow $200 per month for the first 12 months (capped at $2,400) to be applied toward the home purchase. We cap it after 12 months because this is when we generally start trying to help you communicate with mortgage companies and get serious about getting a loan.
Who performs the maintenance after I move in but before I actually get my loan and purchase the house?
Most of our homes are under warranty for the first 3-4 months. Since these homes are newer we assume that if there is a problem you will know about it in the first few weeks. We therefore extend that period to several months to give you plenty of time to make us aware. We go to great lengths to make sure our homes are in good market ready condition when you take possession so seldom is an issue. After the warranty period expires it is your responsibility to do the maintenance.
What areas to you specialize in?
Obviously middle Tennessee and specifically Antioch, LaVergne, Smyrna, and Murfreesboro. We choose these areas based on pricing models, good schools, lower crime rates, and job availability. Occasionally, we do a little in Mt. Juliet, Hermitage, Madison, and other Nashville areas. We never operate in the higher priced areas such as Franklin, Bellevue, West End, Green Hills, etc. We provide only nice starter and mid range homes.
OK I like one of your homes what next?
You go in and look at it. If you like it you put down earnest money to be applied toward the option fee. Generally this amount is $500 to $1,000. You then pay the rest of the option fee and first month’s payment when you actually move in and sign the papers. Until money is put down on a house we cannot hold it.
How can I lock in a “Home Available Soon” and not lose money if it is not what I expected?
We offer a “Right of first Refusal” agreement to folks that are serious about a future home. In a nutshell you put down $500 and I provide you with paperwork saying that you are first in line to get the home. It also goes on to say if you should change your mind before you actually see the home you get all your money back. Generally the fee for this is $500 and as I said it is totally refundable until you get in and see the house and make up your mind.
Download the form for “Right of First Refusal