RENT TO OWN- These Options Are Still Around
RENT TO OWN – This is an available option
Most people did not know this option is still available. Rent Credit for The Option to Purchase is an acceptable source of funds toward the down-payment or minimum borrower contribution. Borrowers are not required to make a minimum borrower contribution from their own funds in order for the rental payments to be credited toward the down-payment. This is good news for renters who would like to become homeowners, and expedite their transaction into ownership. All that is required are: A copy of the rental/purchase agreement evidencing a minimum original term of at least 6 months. Also copies of canceled checks or money orders receipts for the last 12 months showing rent payments. The average rent median or market rent in the area is used to determine the amount established to credit the borrower.
B3-4.3-12 (4.1.2009) This is in the conventional market.