Own Fort McMurray is a locally owned and operated Rent-To-Own real estate company, which specializes in helping people with less than perfect credit achieve home ownership. Our simple and effective approach to home ownership can help you move into your own home and get out of the rental rut.
Why throw your hard earned money away, and pay somebody else’s mortgage? Our unique approach to the real estate market is simple and effective. It all starts with filling out our online application form.
How does the "typical" Rent-To-Own process work?
Rent-To-Own, is a buying strategy typically used for other consumer products such as home appliances, furniture and even cars. But it also exists in housing: some builders will market properties to specific demographics with this method, and investor-companies specialize in using this technique to help buyers purchase their own home.
Typical rent-to-own candidates are people who, through job loss, income reduction or other personal circumstances, are unable to qualify for traditional financing (Banks etc.). But they can also include newcomers to the country or younger people who may just lack the confidence to make such a move on their own.
Would-be buyers will have the necessary income to support a home purchase, but they lack the down payment or their credit history – a key determinant when banks lend money – is bruised (late payments, bankruptcy, divorce etc.), or perhaps even non-existent.
That’s where rent-to-own can be a good alternative, and can work to help renters buy their own home, whether new or resale, house or condo.
Our clients, once approved, and once they have a 4% down payment, can pick out any property they want in the area they would like to live. They can choose a smaller house if that suits them, or a larger house or one more suitable to their budget.
Meanwhile, Own Fort Mcmurray works with the tenant-buyer to improve their credit and get their finances in shape to be approved for their own mortgage, typically one to three years down the road. The agreement builds in a certain percentage appreciation for the property, which allows the investor to realize a return on his or her investment for buying the property on the tenant’s behalf.
The tenant-buyer, meanwhile, is agreeing to buy the home after the term for a pre-determined price. The appreciation rate varies depending on the specifics of the property and the location. If the home’s market value increases beyond that price, the tenant-buyer still buys it for the agreed-upon price, and the incremental value is considered built-up equity.
If the market declines, the agreed-upon increase is still honored, but there are options, depending on the desires of both parties.
At the end of the day, our goal is for the clients to purchase the home of their dreams!
Throughout the term, the tenant-buyer lives in and manages the property as if he/she owned it – including all maintenance and repairs – just like a regular homeowner. Of course, this is after the home inspection is done and agreed upon.
It is a "win-win" strategy. The home buyer wins because they are able to purchase a home when regular approval channels haven’t proved successful. The investor wins because they have hassle-free management and a built-in exit strategy for the property; when the investor sells, he or she realizes the value gains and hands over the property to the new homeowner.
Instead of the renters simply paying money each month to the landlord, they build equity in the home as they rent. Each month, a percentage of the renter’s money is saved for them to go toward their down payment of the home at the end of the rental term. After all, it’s in everyone’s best interests for the renter to purchase the home at the end of the lease term.