QUESTIONS & ANSWERS
BUY ON TERMS
Buyers who can't wait to own a home but who aren't quite mortgage ready.
BUY ON TERMS
Buy on Terms Q&A
Please reach us at [email protected] if you cannot find an answer to your question.
WHAT ARE THE ADVANTAGES OF RENT TO OWN?
TGBH will connect you with a great credit enhancement company that will lay out a specific plan that will get you mortgage ready. There is pride of ownership. We don't have a typical tenant/landlord relationship. This means we treat you as the home owner. You take over any and all ownership responsibilities as a homeowner would. We lock in your purchase price. As the market goes up so too does your equity in the home.
WHAT ARE THE FACTORS IN CHOOSING A TENANT BUYER?
The first thing we look for is character. Does the person we're considering have a strong track record of keeping commitments and follow through? We also look at FICO scores. It's not a deal breaker but if the score is low we want to know how it got there and what needs to be done and how long it will take to raise it to an acceptable level. Next is how much of a down payment the buyer can come up with. The more the better. We are looking not for a renter but a buyer mentality. We finally will look at your ability to pay.
CAN I DO UPGRADES AND REPAIRS ONCE I TAKE OVER A HOME?
The short answer to this is yes! We do however, want to be notified of any improvements to the house as there are certain considerations to be made depending on the scope of work performed.
HOW DOES YOUR EQUITY ENHANCEMENT PROGRAM WORK?
In addition to your down payment you are allowed one extra payment per calendar month in $100 increments up to $500. TGBH will match 50% of your credit. You could potentially have a maximum of $9000 applied toward the purchase price per 12 month period.
WHAT IF THE EXTERIOR OF THE HOUSE GETS DAMAGED?
In the case of damage to the exterior of the house our homeowner's insurance, which we are required to have, will cover the damages. As a tenant/buyer you are required to have renter's insurance until such time you are able to refinance the purchase of the home. Renter's insurance will cover any damages that occur within the interior of the home.
WHAT EXPENSES CAN I EXPECT WHEN I RENT TO OWN?
You would virtually have all of the same expenses as a regular home owner would have. Some of the same expenses would include interior/exterior maintenance, utilities, upgrades, appliances, and in some cases property taxes.