To qualify for financing from a bank, to purchase a home with traditional financing there are many hoops buyers need to jump through. Income verification done, bank statements checked, tax returns provided, pay stubs collected, etc is performed in a credit check. To make the monthly payments, this is done to ensure the buyer purchasing the home will be able and they are committing themselves to be not over reaching in the amount of monthly payment. But what to qualify, in case the buyer fails? While they work to make improvements in the deficient areas, what can they do but wait.

To try purchase a home through a process referred to as rent to own houses is one option buyers with less than perfect credit. All the credit checks performed, income verified, bank statements checked, tax returns provided, pay stubs collected, etc, they may still have. But with a credit repair specialist, they could get set up, and they are on the right path to qualifying to get a mortgage, with that responsible step prove to a motivated seller. Negotiation goes on between the buyer and the seller - and does not need third party approval, when you rent to own a home.

Referred to as an "option fee," rent to own homes often require an upfront payment. To purchase price, this is a percentage normally 3-10% of the agreed. That would be $750,0on a $150,000 house with a 5% option fee. Toward the purchase of the home or jump start properties, it is also customary that a portion of each monthly payment the buyer makes to the seller goes. Also referred to as option payment is this portion going toward the purchase price. Negotiated between the buyer and the seller, this is normally 10-20%.

This option payment made by the buyer is credited to the purchase price of the home, when the buyer is ready to purchase the home. All of the option money that was to be credited to the buyer stays with the seller, if the buyer decides to not purchase the home. Made by the buyer, option fees are sort of like an investment. They lose all of the option fee money they put into the rent to own purchase, if they decide not to purchase the property. Any option money paid up front and any option money paid with the monthly payments stays with the seller and the seller would get the home back. To the buyer, no money is returned.

For further detail about jump start properties and www.rent-to-own-houses.ca please visit the website.