The Federal Reserve Bank of New York recently released the 2015 SCE Housing Survey. The survey revealed that most current renters would prefer owning and that 61.9% of them plan to buy a home within the next five years.
68.3% stated they would prefer owning (with 45.6% saying they ‘strongly’ prefer owning). When asked at what point in the future do they think they will own a primary residence:
- 8.2% said within a year
- 15.3% said in 1 to 2 years
- 38.4% said between 3 to 5 years
What’s Holding Them Back?
Of the 68.3% who would prefer to own, 2 out of 3 cited difficulty in getting a mortgage for the reason they do not own. However, many believe that the reason so many think that it would be difficult to get a mortgage is not fully based on current market realities.
For example, studies have shown that there is confusion over the amount of money needed for a down payment. Research has shown that 40 to 50% of Americans believe that between 15-20% is the minimum required for a down payment. In reality, there are many programs available at 5% and even 3%. There are even some programs that don’t require any down payment (ex. VA loans).
Others fear they need a perfect credit score or believe that the overall mortgaging process has become almost impossible. Actually, the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association, has shown that, over the last seven months, access to mortgages has gotten much more available.
Our Lease to Purchase Program can be the right option in certain circumstances and should be considered when one is running into the stifling question of whether to rent or own. Let’s take a look to see who this would be perfect for and what are some of the guidelines;
- Credit Challenged borrowers who have been recently rejected for a traditional mortgage because they discovered that they did not fit guidelines of the mortgage loan. This option will provide them with the time required to fix the problem and get a traditional mortgage when ready.
- Credit Challenged consumers who have struggled to get their fico scores higher than a 575.
- Relocating Buyers moving to Florida and are unsure about what neighborhoods are perfect for them.
Basic Qualifying Criteria
- Annual Household income of $50,000 or more.
- Stable employment (self-employed is considered)
- No recent history of eviction and no pending bankruptcy ( Eviction older than 12 months will be considered and bankruptcy recently discharged will also be considered).
- Acceptable criminal history
- Application Fee ($75 total per household)
- Single Family Homes or Townhomes (fee-simple).
- Located in approved communities (we will take your address that you are interested in to see if it qualifies in advance).
- List price must be between $100,000 to $450,000*
- Traditional sale or FSBO (no foreclosures or short sales)
- Minimum of two above grade bedrooms on a lot of three acres or less
*List prices are subject to change.
The Lease to Own program allows you to rent a property of your choosing (meeting criteria above) with the option to purchase it (or not purchase it) in the future. There is complete transparency as to what your payments will be every year that you live in the home (maximum 5 years) before you make any commitments. The same transparency will apply the purchase price of the home based on what year you decide to purchase it in. There is no penalty should you decide not to purchase after you complete a one-year lease term.
To find out if you qualify for this program, please fill out the lead form on this page and our staff will contact you in a quick manner.