FAQ’s – Rent to Own & Seller-Financing

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Is Rent-to-Own the same as Lease-Option?

Yes. In both cases you would be renting or leasing the property until you were ready to exercise the option to buy. The process is sometimes also called Lease-to-Purchase or Lease-Purchase or Lease-to-Own.

How do I start the Rent-to-Own Process?

The first step would be to submit an application form.

This application is confidential and your information will not be shared. Submitting the application carries no obligation. You are not committing to anything by submitting the form. There is no application fee required for us to process your application. You would not be required to pay anything until after your application is approved and you are ready to take advantage of our program.

The application process is quick and simple. And you may be surprised at how easy it is to be approved for our program!

After your application has been approved, we may require some additional information and paperwork. We will contact you to give you the details of your approval, and inform you of what else may be required.

How much money do I need to get started?

Since our Rent-to-Own program is your first step towards home ownership, a small option payment is required. While there is no minimum option payment for homes in our available inventory, our goal is for you to have at least 5% of the purchase price held within the program by the time you are ready to purchase.

For homes on the open market, the amount of money required depends on property type and location. Currently the minimum is 10%, but smaller towns and acreages require higher option payments.

No money is required until after your application has been reviewed and approval has been given. After the approval, before we can proceed further with your application, a small application fee would be required. This fee would be applied to your option payment when we get a house for you.

Can I use Sweat Equity to build my down payment?

Unfortunately a bank won't count the increase in value towards your down payment.  However, any increase in value becomes your equity when you buy the home. Your purchase price will not increase above the agreed amount regardless of how much you increase the value of the home.

What if my credit is really, really bad?

You can still qualify to get a home, even with horrible credit!

We can help you start repairing your credit right now so that you are ready to qualify for a mortgage when the time comes.

We can help you establish credit if you currently have none. We can offer Seller-financing if you have the income and the cash to purchase your home but still cannot qualify for a bank mortgage.

Bad credit is an easy obstacle to overcome with our Rent-to-Own program!

What if I have declared bankruptcy?

Even after Bankruptcy, you can still get a home.

Although banks will not approve you for a mortgage until at least 2 years after your bankruptcy has been discharged, we can help you get into your home with the RTO program much sooner.

By the time that the banks are able to approve you for a mortgage, you will have the home you want and may be ready to get conventional bank financing to exercise your option to buy!

Please note if the bankruptcy included a foreclosure, then most banks will not consider you for a mortgage until the bandruptcy has "dropped off" your credit report.

How long before I can move into my new home?

That depends on a lot of factors:

If the home you choose is vacant and move-in ready, then possession is much quicker than if the home is occupied and the seller needs time to find a new place or the house needs work.

If you find your new home with an approved realtor, then it usually takes 1 - 3 months from the time an offer is made until you get possession.

And if you need a home immediately, then you can choose from several homes available and waiting for you. And if we don't already have something that suits your needs, we have access to many other Rent-to-Own homes through a cooperative effort with a sister company.

How long is the Rent-to-Own program?

We try to tailor the program to meet your needs. Most clients lease for one to three years before they qualify for a bank mortgage.

Conventional bank mortgages require 20% down payment, good credit, and a steady job, but our Seller-Financing program can help here too. CMHC-insured mortgages require less down, but usually have stricter credit standards. We can discuss this in more detail when we review your credit reports.

We usually set the initial lease term to be the shortest possible time in which we think you may be able to qualify with a bank, and then renew your lease and option, if required.

How is the final price of our home decided?

The price of your home is decided right at the beginning when we sit down and discuss all of the terms of the Rent-to-Own program.

You will know from day-one what that final price will be by the end of your lease-option.

The purchase price will not increase during the term of the lease-option, even if market forces or your improvements increase the home's value beyond the agreed price.

What happens if I don't have the full 20% down payment at the end of the term?

There are a few options here:

• 1. We can usually negotiate a new Rent-to-Own agreement, giving you more time to save and further improve your credit.
• 2. You may qualify for a CMHC-insured mortgage with a bank. Currently CMHC mortgages allow a down payment as little as 5%.
• 3. You may qualify for our Seller-Financing program if you have close to 20% but can't qualify with the bank.

What if I have the full 20% down payment now but cannot qualify for a bank mortgage?

We are pleased to offer our Seller-Financing program at any time: now, during the Rent-to-Own term, or at the end of the term. If you have a steady income and 20% down, you can buy your home at any time and we become the bank.

no bank qualification required

bad credit, no credit, ...no problem!

works great if your income is difficult to verify, if you are self-employed, or if you are new to Alberta

We sit down and work out payment terms that work for both of us and you don't have to rely on the banks!

In what areas can I buy through this program?

At this time we are purchasing homes only in the Greater Edmonton area.

If you would like to purchase outside of the Edmonton area, we would be happy to connect you with some of our colleagues.

Who will see the information I send QD?

We value your privacy and we assure you all information you send us will be kept strictly confidential. Other than QD's staff (who sign non-disclosure agreements), the only people who will see or have access to your information are people you have authorized to do so.

What if I still have questions?

We would be happy to answer any questions you may have. Please submit a Contact form, call 780-756-4578.

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