Many individuals, especially young adults, don’t qualify for a traditional mortgage for a variety of reasons. Over the years, banks and lenders have really tightened up on who they will give money to despite their previous leniency. This has put many people in a situation where their dreams of owning a home are put off for years or even decades. The alternatives are not exactly positive for your financial situation. Renting an apartment ends up costing you a considerable amount of your paychecks with no real benefit – just money lost. Even if you eventually can come up with the down payment, you may not have the credit to qualify for a mortgage. Luckily the real estate market depends on people buying homes and there are options out there to help you on your way.
Duplexes have been a staple of the urban/suburban city life for decades. They offer affordable living space for families and singles alike. The major benefit of purchasing a duplex is that you can earn income from the other units while living in your own space. They are also a great option for larger families who would like to share homeownership and retain an asset.
If a Duplex is what you are after but you don’t qualify for a traditional mortgage, you might want to consider the process of the rent to own option. The rent to own option is best for those who don’t have credit, or lack major assets, those who have bad credit, individuals who cannot afford a full down payment or the self-employed. Not only can you build credit by using the rent to own option but you can earn income from the other units in the duplex and use that money towards your rent or down payment.
Here is how it works:
Contact a reliable rent to own program like Sandstone Management in Ontario or Muxaro in Montreal, Quebec. They can assist your situation, tell you how much you prequalify for, and set you up with a team of experts to get you on your way. They can recommend a realtor who can assist you in finding the right property to suit your needs that is within your budget. They can negotiate the price and terms of a rent to own lease, check the property for structural soundness and value, and help you avoid first time home buyer mistakes. You get to move in and make affordable monthly payments for a fixed period of time, usually not more than what you currently pay in rent. As you make your payments on time, you build/rebuild your credit. A portion of each payment goes towards equity that can be used towards your down payment. At the end of the leasing period, you can apply for a mortgage on your duplex with your new equity and credit rating. You may also build equity over the duration of the lease if home prices have gone up, since the price you buy the property for is pre-determined. A higher down payment and better mortgage credit score will help you qualify for a rate that is more favourable.
With rent to own duplex arrangements, a portion of your lease payment is put aside to make up the eventual down payment for your home. The retail market fluctuates throughout the years and any rise in the market value of your rent to own duplex becomes your gain. You can earn equity, repair your credit, make a down payment on your home and live where you want to live – all with the help of a reliable rent to own company over a fixed period of time. Duplexes tend to be on the more affordable side of the market because you have the ability to earn rental income to balance out the payments that you make on your home.
If you can’t afford a down payment now, don’t waste your time and money on renting apartments with no long term gain. Talk with Sandstone Management in Ontario (905) 235-0841 or Muxaro in Quebec (514) 225-6706 about the lease to own option and be on your way to owning your home.