To help you understand our program, we have listed the most commonly asked questions and answers below. If you can’t find answers to your question, please contact us.
Q. How does the Rent-to-Own Program Work?
A. Oil City Home or its partners will purchase the home that you choose, and you will be given the exclusive right to purchase the home at the end of the agreed-upon term. Throughout this time period, our professional team will work with you to save for your down payment and improve your credit score. At the end of the term, you will apply for a traditional mortgage and the property will be transferred to you at a predetermined price. The Initial Option Consideration, along with the Monthly Consideration is credited towards the purchase price of the home as a down payment.
Q. Do I have to pay a down payment?
A. Yes, you will need an Initial Option Consideration, calculated based on the purchase price of the house. We offer certain flexibility when it comes to the initial option Consideration amount and our experienced Rent-to-Own specialist will work with you to determine options.
Q. Can I qualify if my credit is not ideal?
A. Our experienced mortgage specialist will perform an assessment on your credit and determine whether the program is suitable for you. If you have a good chance to qualify for a traditional mortgage in 2-3 years, you will be provided with an action plan that will help you improve your credit score.
Q. If I am self-employed. Can your Rent-to-Own program help me?
A. Oil City Home understands the challenges that you face with getting a traditional mortgage at major banks. Our Rent-to-Own specialist will assess whether the program is suitable for you after reviewing your information.
Q. Who pays for property tax and home insurance?
A. Oil City Home pays for the property taxes and building insurance. We encourage you to get tenant insurance during the lease term. When the title is transferred to your name at the end of the term, you will be responsible for property tax and home insurance. We will help you prepare for homeownership and handle the expenses yourself.
Q. Is the predetermined purchase price of the home negotiable?
A. One of the greatest benefits of Rent-to-Own is that our clients can lock in a fixed purchase price of the home at the beginning of the program. The locked-in price is based on the conservative estimate of the future value of the property. Regardless of how much the home appreciates over the term of the program, your purchase price is secured by the agreement and will not change. This will help our clients to plan ahead and mitigate uncertainties.
Q. Are the monthly payments negotiable?
A. The more funds you have at the beginning of the program the less you will likely contribute towards your monthly payments.
Q. What if I can’t afford the monthly payments or the Initial Down Payment Now?
A. Our experienced specialist will work with you to ensure you purchase a home that you can afford. Our ultimate goal is for you to successfully purchase the house at the end of the term.
Q. What happens if I am unable to pay for the monthly payments?
A. It is your responsibility to pay the monthly payment in full and on time for each payment, just as you would pay the monthly mortgage payment to the banks. If you miss a payment, you will be in default under the program. If you are in default for a period of more than 30 days, we have the right to commence legal proceedings to recover and secure our interests in the property.
Q. What happens if I do not want to buy the house at the end of the term?
A. First of all, we ONLY work with highly committed individuals and families as we will be making a significant investment in you. In unexpected situations where more time is needed, we can extend the program length. If you choose to walk away from the home, you will forfeit your non-refundable option consideration and there will be significant consequences and costs involved in selling the property. The costs include, but may not be limited to, realtor commissions, mortgage repayments, payout penalties, interest costs, holding costs, investor payouts, marketing, etc.
Q. How soon can I move into the home?
A. The approval process usually takes 1 to 2 weeks. During the approval process, our specialist will assess your situation and design the program with you. Once approved, the house selection will normally take 4-6 weeks. After the offer on the property has been accepted, please expect another 2-4 weeks before possession. Overall, it will take 2-3 months before you can move into the home.
Q. I am ready to become a homeowner, what’s next?
A. The first step is to fill out the pre-approval questionnaire. Click the button below to start this exciting journey!