Rent To Own Mortgage

At MSI we want to work with people who already have a homeowner mindset. Our Homeowner Prep Program is ideal for anyone who:

• Is eager and motivated to become a homeowner.
• Understands the benefits of equity appreciation, mortgage pay down, and the pride that homeownership provides.
• Is tired of spending hard earned money on rent which makes their landlord rich.
• Understands that real estate is one of the best ways to begin building their wealth.
• AND who has had trouble obtaining traditional mortgage financing.

Most commonly, the main obstacle for our clients is obtaining a mortgage because they currently do not meet lender requirements. Through our Homeowner Prep Program, we offer our clients an alternative for home ownership and provide enough time to build the credit and equity required to successfully purchase their home at the end of the rent-to-own term.

How the Homeowner Prep Program Works

The Homeowner Prep Program allows you to begin investing in homeownership today and is designed to help you strengthen your financial position so that you can qualify for a mortgage in the future. Through your participation in our HPP we help you:

• Establish or repair your credit
• Build a large enough down payment to purchase the home at the end of your term

 Homeowner Prep Program Requirements

While we do not have the same strict qualification requirements as the banks, we do have some basic requirements for participation in our program:

• Minimum down payment of 5%
• Minimum gross household income of $60,000 per year
• Any credit score

Developing the Homeowner Mindset

Our Homeowner Prep Program is designed to put you in a position to officially become a homeowner. The program develops the homeowner mindset as you work at:

•    Improving your credit
•    Being financially responsible
•    Saving your money every month, and
•    Making sure you stay on track with your Homeowner Prep Plan!

Within a short time you will become a homeowner, but more importantly you will build wealth and equity in the process

What is Rent to Own?

Simply put, rent-to-own is renting with the option to buy. The deal is setup using an Occupancy Agreement and an Option to Purchase Agreement. With rent-to-own, then tenant-buyer has the option to purchase the home at a pre-determined price within a given time period.

Rent to own is also known as lease to own, lease option, lease purchase, or rent to buy.

Benefits of Rent to Own

There are several benefits of rent to own, but the biggest benefit to our clients is that we are often able to say yes when the bank has said no. With rent to own programs, clients can:

• Use a lower down payment
• Build equity (through monthly option credits)
• Build sweat equity (through building improvements)
• Avoid expensive closing costs
• Take time to repair/re-establish credit

 How Does Rent to Own Work?

• The tenant-buyer puts forward a small down payment. This is credited towards the purchase price when they purchase.
• The tenant-buyer makes monthly payments and a portion of each payment accumulates additional down payment funds which are also credited towards the purchase price when they purchase.
• During the rent to own program the tenant-buyer works to establish or repair their credit.
• At the end of the program the tenant buyer applies for financing through a conventional lender.
• With an accumulated down payment and a mortgage pre-approval, the tenant-buyer purchases the home and officially becomes a homeowner!

If you’re feeling a little disappointed, a little hopeless when it comes to buying your own home, or if you’ve been turned down by mortgage companies or the banks before, you’ve come to the right place. At MSI we specialize in helping deserving, Ontario renters just like you get into a home of their own fast.

NO MORTGAGE? NO PROBLEM!

Huge numbers of honest, hard working people here in Ontario lack the near perfect credit that banks and mortgage companies require to buy a home. If you fit into this group, don’t be discouraged because there are still ways you can get into a home of your own today.

YOU CHOOSE YOUR DREAM HOME – WE’LL BUY IT FOR YOU!

What if there was a way for you to choose your dream home today, and move in without having to come up with a huge amount for down payment and closing costs, or worry about rejection due to credit problems? Would you be interested? Of course you would!

How it Works

1. Apply – Simply complete our simple (and completely confidential) application form to help us qualify you for the maximum purchase price you can afford. You can request the application form from your agent once you’re ready to get started.
2. Get Pre-Approved – Once you apply, we will review your application and issue a pre-approval within 48 hours.
3. Complete the Approval Process – After your application is pre-approved we will need you to provide some basic documentation to verify your income and down payment. Once we have your documents back we will prepare your formal pre-approval to let you know the maximum purchase price and pricing based on the info you have provided to us. If you’d like to proceed there are a few more documents we’ll need and then we will complete your client interview.
4. Go Shopping With a Realtor – The next step after we complete your approval process is that we’ll issue your commitment package and set you up with one of our Realtors. You then get to go shopping with this Realtor to choose your dream home within your pre-approved budget.
5. Rent to Own – After you’ve selected the home for your Rent to Own program, we’ll buy it for you and rent it back to you for a period of 2-3 years. This gives you time to clean up your credit, build a higher down payment, establish a track record of income, or overcome whatever obstacle is preventing you from obtaining a traditional mortgage today. Don’t worry, we’ll help you with all of this.
6. Become the Owner – At the end of your Rent to Own term you’ll qualify for a traditional mortgage and take title to the home to become the official homeowner.