FAQ’s

A rent-to-own home is a special agreement that allows you to buy a home after renting for a period of time. In most cases, a rent-to-own agreement is a contract on a property that allows you to purchase the property at some point in the future. It works like a lease that leads to a possible purchase. It’s often called a lease with an option – or a lease/option agreement for short. 

The lease portion is a standard residential rental agreement that includes monthly rent, length of lease, maintenance terms and other typical lease terms. 

The option portion is the contract that gives you the right to purchase the property for a set price within a set time period. 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 may be other options if your financial situation requires special circumstances. 

With a rent-to-own contract, you may pay a bit more in rent than its fair market value. Sometimes, the extra money becomes your down payment at the end of the lease or is applied to the purchase price. You may need to pay a “non-refundable option fee” that equals 2% – 20% of the home’s value to lock in the option of buying the house. If you end up exercising your option to purchase the house before the expiration date, this amount goes towards the purchase price. If you don’t buy the property at the end of the lease or expiration of the option contract, you will lose your extra payments and non-refundable option fee. 

A lease purchase is a type of rent-to-own contract in which the buyer, who will lease a property for a set lease term, has the obligation to purchase the house at the end of the lease. The seller also has the obligation to sell the home to the buyer at or before the end of the lease. Lease purchase is one of the few variations of rent-to-own that is truly different from the rest. It means that you sign the lease and you must purchase the home by the end of the lease. Other variations of rent-to-own give you the option to purchase the home. However, if you sign a lease-purchase agreement you must buy the home or face legal consequences. We do not offer Lease Purchase homes as we want the resident to have the option to move forward with the purchase or if they don’t want to purchase the home after living there for more than one-year, they are not forced to purchase. 

There is no difference between rent-to-own and lease-to-own. Both are types of rent-to-own listings through which you rent a home and have the option to buy it at any point throughout the option term.

The rent to own process is actually pretty simple. Once you’ve visited one of our fantastic opportunities, we’ll give you an application to fill out or an online link. Don’t worry – we help people with all kinds of credit and financial situations, and if you can afford the property and have a down payment, we will do our best to help you to own it. 

After you’re approved to rent the property, just sign the lease and option documents, pay the down payment and rent – then move on in! 

Your rent-to-own contract also known as a lease and option agreement will spell out the length of time that you have to complete the purchase of the property – typically 2-3 years, but in certain circumstances we may extend your option if you need more time. Always double check the term as each property may have slightly different lengths for the option period. 

The purchase of your home usually takes place through a traditional mortgage loan, but there are other ways to complete the purchase, depending on your finances. 

That’s the process! 

Once you’ve completed your mortgage, you’re done – now you own your home and we are no longer involved, congratulations! 

First step – sign up to find great properties around Lincoln or Omaha just by filling out the form (link to form to go here). 

You’ll get immediate access to great rent-to-own homes, plus a whole lot more. 

Sign up and get started now! 

Yes, Rent-to-own is safe. It has its risks, but so long as you are aware of them, they are completely avoidable. For example, make sure that you can raise your credit score high enough to qualify for a loan at the end of the lease option period. Otherwise, you would lose your option payment and premiums because you didn’t purchase the home. Additionally, some companies intentionally set you up to fail so they can keep your option payment. We keep you and your money safe, however, if you don’t fully move forward during the option period you will lose the fixed price and the purchase price could increase but, that is all documented up front and we want you to buy the house and work with several local lenders to try and get you the loan you need and then end of the option term.

No, Rent to own houses are not scams. However, people who rent-to-own can scam you if you don’t verify that they are the owner.Check with your local tax assessor to make sure the listing isn’t pre-foreclosure, don’t pay any additional fees or deposits that aren’t common to rent-to-own and be wary of unreasonably low prices and never ever send money by wire, ach or gift cards to someone you haven’t met in person. If you are dealing with someone totally over the phone, text or email and have never met a company representative in person at the house or at their office-chances are that is a scam. Many times scammers see our actual property listings and copy them word for word and put them on facebook or craigslist and offer our property at a lower payment if you send them a deposit. Don’t fall for that scam. We are the owners of the houses that we offer and we will meet you at the house and let you check out the house inside and out. We will answer all of your questions as we have nothing to hide and we're in business for the long-term as we appreciate our residents and look forward to you referring your friends, family, co-workers and others to us so we can provide a solution to their housing needs too.

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’ll conduct a background/credit check and verify the income(s) for everyone over 18 who is living in your household to confirm that you’ll be able to make your monthly payment. 

People with bad credit, no credit, limited cash available, and other financial situations have all been able to lease then purchase homes that we offer.. 

We’ll speak with your references and previous landlords, because relationships matter to us more than just scores assigned by a computer. If for some reason you don’t have enough information or history to verify that might not be a problem. We will also accept a co-signer as long as they own a house and have equity in their home. 

We love helping great folks to reach their dreams, so don’t be afraid – fill out the form (link to form goes here) below to get started! 

Yes and no. Technically, we do not require a down payment, however, yes there is a significant amount due at move-in. This is the option fee and the first month's rent and in some cases we require the second month's rent. Each home may have slightly different terms with the option and move-in costs. 

We can help you to structure the perfect scenario to meet your needs. We’ll show you the rent-to-own calculators and formulas that we use when we prepare your agreement, and help you figure out what’s best for you.

It is customary in the marketplace that a significant investment is needed prior to moving in. That is what provide security to the seller that you are serious about buying a home and living there for many years to come. 

The price of a rent-to-own home depends on the market value of the home. Typically, the seller and the buyer work together to estimate what the home will be worth at the end of the lease, however, many of our available homes have a set purchase price. The monthly rent payment is calculated based on fair market rent, however, it is more similar to that of obtaining a 30-year mortgage just like getting a loan from a bank. 

Renting-to-own costs just as much as renting a home until you have enough money to buy one, as long as you do purchase the house you are looking at. Depending on what the final interest rate is that you qualify for your monthly payment should go down after the option term (this depends on market conditions and prevailing market interest rates at that time).

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. 

It's easier to make rent-to-own work with bad credit than it is to make a mortgage work. While we are required to check your credit, we are only checking to make sure your credit will be high enough for you to qualify for a mortgage by the end of the lease and to ensure you meet the requirements regulated by law. You just need to build your credit high enough during the lease to qualify for a mortgage at the end of the lease. 

So fill out the form at the bottom of this page now and get your piece of the American dream! 

Yes, most of the time the appliances that are on-site at the time of your inspection are included in the purchase, however, any furniture isn’t included with a lease/option purchase. 

Generally, the basic appliances are included – a refrigerator, range/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. On most of the homes we are offering, we do not know the history of the appliances so if the appliances are not brand new, you will want to bring your own or plan for the unexpected in case one of the appliances does not work or needs a repair. 

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. 

No, you do not need a realtor to rent-to-own. In fact, most realtors are not willing to work with clients looking to rent to own because they do not make a lot of commission. We have a flat fee of $500.00 we pay to the agent. If you are wanting to bring your realtor that is fine, however, you would be responsible for paying their traditional commissions which can be several thousands of dollars. This is because our compensation to the agent is based upon renting a house and not an outright sale.

Not normally in most local markets. Yes, a realtor can help you find a rent-to-own home; however, it is unlikely you will find one who will want to unless you as the buyer pay them for their services. Realtors make very little commission from our rent-to-own homes-flat fee of $500.00. his is because our compensation to the agent is based upon renting a house and not an outright sale. They basically have to make a commission from your option fee because the sale of the home isn’t for a long time. Additionally, occasionally buyers decide not to buy rent-to-own homes, leaving the realtor without commission at the end.

Rent-to-own is more expensive, the same price and less expensive than the alternatives. Which one depends on the scenario. When considering the monthly cost of rent, you do pay more each month to rent-to-own. However, the extra you pay goes toward the peace of mind knowing you are in control of your future and not a landlord that kicks you out after one-year or jacks the price of the monthly rent up by an astronomical amount. Additionally, the cost you pay for the home is an amount that you and the seller agree the home will be worth to you at the time of sale-this is usually 2-3 years in the future. 

There are a lot of benefits of a rent-to-own agreement! 

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! 

I am sure if you don’t want to own your own home someday, you can come up with a thousand reasons why rent-to-own is bad or not good. Yes, you as the buyer may be paying slightly more than the current market trends for either the monthly payment or the price of the house at today’s market prices. However, if you exercise your option at the fixed price and purchase the house this would be no different than renting somewhere else for 2-3 years and then buying a house at the market price at that time when real estate prices may have gone up another 5-15% or more. 

The risks in renting-to-own a home could be numerous with all of the what if scenarios. However, so long as you have verified the seller to ensure you are not dealing with a scammer that is 80% of the risk in our experience. The other big risk is dealing with a seller that just wants your option fee without ever actually selling you the home. Please don’t do business with someone like that.

We want you to buy one of our homes as we are in business for the long-term and that’s how we pay our bills and keep the lights on. When you buy one of our houses and make it your home, we know that you will recommend us to others and we love referrals! 

You shouldn’t rent to own if your credit score won’t qualify for a mortgage at the end of your option term. We can even have you talk to one of our preferred mortgage brokers about what kind of credit score you would need to qualify for a loan. You can use a credit simulator to figure out what you would need to do to get there and make sure it is attainable. You don’t want to do rent-to-own if you won’t qualify for a mortgage because you will end up losing your option payment and premium payments. However, we even have a program for that scenario where if you can’t qualify down the road but, have been making on-time payments continuously we will work with certain lenders of ours to obtain fixed rate financing for you. Again, we want you to succeed and buy your home so that you will refer us to all of your friends, family member, co-workers and more.

Rent-to-own homes aren’t dangerous as long as you know about the potential pitfalls. The main catch is that if you don’t purchase the home, you lose your option payment. It’s important to make sure that you will qualify for financing at the end of the lease before you sign the lease. That is the main reason people end up not purchasing rent-to-owns. This risk can be eliminated if you take care of the home and always make your payments on time. Again, we repeat, always make your payments on time and you will be fine in exercising your option to purchase at the end of the term. 

Are you considering choosing a rent-to-own lease? Here are a few situations when rent-to-own is a good idea: 

• You need time to improve your credit score. Your credit score influences mortgage loan options like interest rates. A rent-to-own property can give you the time you need to improve your score.
• You need time to save for a down payment. A rent-to-own deal gives you more time to save up a down payment. If you can save enough money in addition to what’s collected in rent credit, you may potentially have enough to make a 20% down payment and avoid private mortgage insurance (PMI). 
• You don’t think you can save on your own. Are you living paycheck to paycheck and having trouble saving? Having your monthly rent payments go directly toward a future down payment can help you save because the expense is built into your monthly living expenses. 
• You know where you want to live and want control of your future housing needs. Rent-to-own leases work best when you know exactly where you want to live. When you sign a rent-to-own lease, you should feel confident you want to live in a particular. 

Yes, you can rent to own with a previous eviction. There are no specific requirements to rent-to-own other than the standard qualification process which has to do with the ability to repay.. Therefore, you can rent-to-own a home with a previous eviction. 

This is likely a no, however, you can verify by contacting the Lincoln Housing Authority who coordinates the Section 8 housing program in the City of Lincoln as regulations can change over time. If you are in another city, verify with their local Section 8 housing administrator. 

You should rent to own when you 

(1) have a credit score or are close to having a credit score that will qualify you for a mortgage, (2) need to start saving up for a down payment and/or 

(3) have found a home that you would like to purchase but would like to live in for a little while as a test drive. 

Many people use their rent-to-own lease to finish building up their credit and saving up for a down payment.