We help buyers create a plan to become mortgage qualified while they are renting.
Our Rent-to-Own Guide Gives You
Same Day Consultation
to put you on the fast track to repairing your credit
Pay As You Go Service
so that you are not locked into a long term contract
An Online Account
to track the progress of your file in real time.
Rent-to-Own Consumer Statistics
2.6% of households have participated in rent-to-own transactions.
58% of individuals who rent-to-own purchase the home at the end of the lease.
4 of 5 consumers who rent to own are between the ages 18-44.
What is an RTO Agreement?
A Solution For Those Who Can't Qualify
An RTO (rent-to-own) is an agreement where you commit to renting a property for a specific period of time with the option of buying it when the lease runs out. You pay rent throughout the lease, and in some cases, a percentage of the payment is applied to the purchase price. This can be a really helpful tool for consumers who would like to get established in a home but still have to find out how to finance it.
What to look for
RTO Advantages & Disadvantages
When “rent to own” agreements are executed properly, it can give a seller the advantage to sell their home faster, and it can give a buyer an advantage by letting them move into a home they want to live in while they are working to qualify for a mortgage to purchase it. Here is where “rent to own” can get tricky. There is no such thing as a “rent to own” program, this is simply an agreement between two parties which means that if you aren’t careful you can wind up further away from owning a home than ever.
The Truth About 'RTO Listings'
You can find a lot of sites online trying to sell you access to databases of homes that are ready for an “RTO”. These sites are actually just regularly listed houses for sale. Now this seems misleading, but the truth is every house that is currently listed for sale, or is for sale by the owner, is potentially a rent to own lead. Typically to get an RTO a buyer is expected to reach out to dozens of sellers to try to get someone to agree to a rent to own home. As a member of CIG we will provide you with a handful of reputable sites that have the same listing for no additional charge.
Consumers are often unaware of what they actually need to qualify for a home. RTO agreements usually have an arrangement to pay higher rent for the term of the lease. The extra money spent every month will go toward the purchase price of the home when you eventually get a mortgage and buy it. This will make so the buyer has to bring in a smaller down payment or no down payment at all- which is typically the best benefit for the buyer but all too often the opposite happens. If you don’t understand the reality of what you need to purchase your home and you are unable to qualify for a home within the agreed time, you lose all of the extra money you paid toward a down payment during the years you were renting.
There is no regulation that states the rules of an RTO. There are as many different RTO arrangements as there are people so it's important that you have a contract that details the arrangement and affords the buyer and the seller extra protection. When done properly, an RTO can be a great tool.
How Credit Innovation Group Executes RTO
When a member chooses the Rent to Own Guide with Platinum Services we take a slightly different approach. Our customer will undergo a comprehensive credit analysis to identify the big things getting in the way of qualifying for a mortgage. Their personal credit specialist will build a step by step map that helps them repair, build, and leverage their credit.
Increase Scores While Becoming 'Home Ready'
While we are helping increase scores they will go through our “Home Ready” process which will help them understand the non credit items that a lender will be taking into account. If it appears that credit will not be an issue and that the other non credit items like income and employment are in place, we will match you with a lender that can take an application and tell you exactly what it will take to become credit qualified. Often our consumers who get to this step find that they can qualify for a mortgage faster than they initially thought and they skip the “rent” part of rent to own and simply purchase their own home.
Ensuring A Successful RTO
The rest of our members will now have a real understanding of what it will take to purchase their home and very often will have a real timeline that they can count on. This information helps our members navigate an RTO in a really powerful way. When our members are looking for homes that they want to approach for an RTO, they have a realistic understanding of how close they are to qualifying and what terms they need to set to ensure a successful rent to own agreement.
Rent-to-Own, a Home-Ready Solution
Find Real RTO Listings
Understand the RTO Process
Acquire an RTO Contract
Get Approved for a Mortgage Loan
A rent-to-own is an agreement where individuals commit to rent a home for a certain period of time and have the option to buy the home before the end of their lease.
While there are many benefits to rent-to-own agreements, the biggest benefit is being able to move into a home without having to qualify for a mortgage first.
Another major benefit to a rent-to-own agreement is that it allows you enough time to repair your credit history while living in a home.
Most rent-to-own agreements require an upfront payment (typically 2.5%-7% of the purchase price).
See How We Can Help You
Improve Your Credit
Having good credit opens the door to achieving our financial dreams. We help our members develop a strong credit profile so that they can do just that. What are you waiting for?