Have You Considered Owner Financing or Rent to Own?
Did you know that Moore Acquisitions offers Rent to Own and Owner Financing on some of our Single Family Homes (but not on our duplexes, obviously)? Well we do! I would like to take this opportunity to explain the differences to you, so you know what options you have. Please give us a call at 903-546-8418 time to explore your options!
Owner Financing: 👉 CLICK HERE TO VIEW OUR PROPERTIES AVAILABLE FOR OWNER FINANCING
How Much do you have saved up for a down payment?
If you have more than $20,000 saved up, and are looking to buy a home, give us a call to see what we have available, and at least start getting a game plan together so you have a goal in mind as to how to work with us! If you only have $20,000 and the sales price of the property you are interested in Owner Financing is $200,000, you would need $40,000 down. BUT the good news is that we can get you in our Rent to Own Program until you DO have the rest of the full Down Payment! We WANT to work with you, and as long as it makes sense, we will likely be able to work something out. Let’s just discuss!
We like to aim for 20% Down Payment, but if you have a substantial down payment. Just give us a call and we may be able to make some accommodations.
If you have 20% saved up to put down, you can potentially qualify for Owner Financing. That 20% will depend on the purchase price of the home. We do not have purchase prices ready on all of our properties all of the time, since the market fluctuates and seems to be constantly going up. Feel free to let us know you are interested in Owner Financing, then give us some time to analyze the property, and we will let you know what you are looking at.
Did you know that when you Owner Finance, your payments COULD be LOWER than your rent? Allow me to explain why. As Landlords, we do not get to take the Homestead Exemption which can often cut property taxes in half! When we rent a property, the rent we charge not only has to cover the mortgage payment, but also the property taxes, insurance, and maintenance! As a HOMEOWNER, you would have the opportunity to file for a Homestead Exemption and potentially lower the taxes! The insurance coverage you choose can also cost more or less than our Landlord Policy.
How Owner Financing Works:
- You are BUYING instead of renting!
- No hassles! We want to make it easy on you, and get you into your new home. Your credit won’t affect our approving you for the loan, but your credit score can affect the interest rate. The RMLO will advise
- You will typically need 20% of the purchase price to put down as a Down Payment.
- We would need to set you up with an RMLO (Residential Mortgage Loan Originator) and sign a contract and receive your earnest money to begin.
- You would then fill out the application with the RMLO and get started.
- We have a sample budget (based on 20% down payment and 10% interest: which gives you your PI [principal and interest]). If you are putting less than 20% down, you will more than likely pay a higher interest rate
- We also include an estimate of your taxes and insurance based off of what we pay. As landlords, we often pay much higher property taxes and our insurance only covers the structure in our landlord policy. Whatever coverage you choose and whatever company you go with, will determine the actual cost for insurance. This is out of our control. Property taxes are often much lower for home owners that homestead. We cannot guarantee when you will file for homestead exemption. You can call the county and ask what your annual property taxes will be once you file your homestead exemption. Again, this is out of our control as to when you will file and when the county will accept it and change the amount.
👉 CLICK HERE TO VIEW OUR PROPERTIES AVAILABLE FOR OWNER FINANCING
Rent to Own: 👉 CLICK HERE TO VIEW OUR AVAILABLE RENTALS
How much do you have saved to add to your Deposit?
5k Deposit and First Month’s rent is typically all you need to Rent to Own (This can vary depending on the home, some of our properties require a larger Deposit)
How Rent to Own Works:
- With Rent to Own, you are Renting UNTIL you have the Down Payment saved up. Your Deposit is Non Refundable, since you intend to purchase the property in the future. Any credits added to your deposit are also Non Refundable since they are added to your Non Refundable Deposit and intended to go towards your Down Payment.
- With Rent to Own, you are renting and 100% of the rent you pay goes towards rent, not the house payment. If you make your rent payment before the 1st each month, you will receive a $50 credit applied to your deposit.
- At the end of 12 months, if you have paid your rent every month before the 1st, you should have $600 added to your deposit. If you get your income tax back and want to make a large deposit to be added to that, we can accept that. Once you have 20% saved up or in that deposit, you can begin owner financing but you will need at least $1500 to pay the RMLO plus closing costs, so keep that in mind!
- If you get a large lump from a bonus at work or your income tax, for example, you can let us know and it can be applied towards your Deposit and get you saving up for the Down Payment! Just give us a call and we will go through the steps!
- When renting to own, we still own the property and therefore, we are still paying higher property taxes. This is why the rent to own rent is typically higher than the house payment. Once you begin rent to own and you file for homestead exemption, your house payment would likely be lower than the rent amount you’re paying but not always since this depends on the property taxes and your insurance coverage.
- When renting to own, you are responsible for all repairs and maintenance. If you have a problem with the house that you are not able to fix immediately, especially if it could cause serious problems with the house if left, just give us a call and explain the situation. We have contractors that can often fix things quickly at a much lower cost than what they may charge the public. If cost is an issue, let’s discuss! We would rather pay for it and let you pay us to leave a serious problem unattended and cause major issues to the property.Â
👉 CLICK HERE TO VIEW OUR AVAILABLE RENTALS