Rent option to buy home solutions. Bad credit, no credit

Maybe, you have tried everything, but something is derailing your dream of owning a home. Maybe you cannot come up with the down payment, which is often as big $10,000 to $20,000, yet you have a great income.

Perhaps your income is not big enough. You have bad credit or no credit. You haven’t been in Canada long enough, and are a new immigrant with dreams of owning a home.

This could be an answer for you, yet many Realtors will not offer you this solution, because there might be no commission in it for them.

There is also a lot of leg work to be done with all the preparation for the potential home buyer/tenant and many Realtors have no time to find a seller willing to consider the home rent to buy option, since these homes are not listed, and lengthy negotiation has to take place in order to make it happen.

As a Realtor, it is my job to find a home for my potential home buyers, and it also my desire to build long term lasting relationships. I might make a commission on the sale of a home, but getting my clients into a home of their dreams, whether or not a commission is made is a part of building that long term relationship.

With a rent option to buy home, there are a number of possible paths to getting that dream home and here are just a few:

1. Seller has a relationship with the potential tenant/buyer. Tenant is unable to meet the requirements of the GDS ratio, for a number of factors including low income. GDS is the percentage of gross annual income required to cover payments related to purchasing housing.

In such a case the Seller wanting to help out the buyer can opt to work with the investor, and take out some equity in the property, while allowing the relative, friend or whatever might be the case to begin the rent option to buy a home. Realtor doesn’t receive a commission, but has very happy home owners.

2. In this situation, a home is found that suits the needs of the buyer, and buyer meets the GDS ratio requirements. An investor purchases the home, and a schedule of rent , down payment deposits, and investor return on investment payments is calculated.

If the buyer meets all the requirements, then the arrangement can go forward. No agreement of purchase of sale exists at this time for the buyer, because it is a rental agreement. The investor owns the property, and the agreement is between the investor and seller. In this case the Realtor makes a commission.

As an Olympian, and now a Realtor, I have learned there is always more than one way to get to the finish line, and it is not always the direct route, and as such there is always more than one way to get to your dream home.

If this sounds like an opportunity you would like to take please contact me about this rent option to buy a home proposal.