For many people, the first question they ask as they start any RTO program is exactly this: “Do I earn equity with a rent to own agreement? This question comes up frequently with our Fayetteville families… and honestly, the answer has evolved significantly in recent years due to new regulations that impact what homeowners can do when selling their property through a lease-to-own arrangement.
One of the major advantages of homeownership is building equity as you make payments and reduce your mortgage balance – something we help Fayetteville families achieve through our structured path to ownership.
What many aspiring homeowners don’t realize is that during the first 5 years (or longer) of a traditional mortgage, most of your payment goes toward interest… with very little actually reducing the principal balance to build meaningful equity.
However, during the later years of your mortgage, you’ll see the majority of your equity growth since most payments then go directly toward the principal balance – this is why our ‘Mint Start’ program helps you get positioned for long-term success.
How does it work with a rent to own, or lease to own agreement?
When you explore a lease-to-own home opportunity in Fayetteville with Mint Start Home Solutions, there are several arrangements available… but our most popular ‘Mint Start’ program works like this:
- You discover the lease-to-own home you love and complete our simple application
- You and our team agree on a monthly payment, an initial “opportunity fee” that secures your exclusive right to purchase the home later, and the final purchase price if you decide to buy at the end of our lease agreement.
- You move in and make your monthly payments while caring for the home like the future owner you’re becoming.
In traditional lease-to-own arrangements of the past, homeowners could apply a portion of monthly rental payments directly toward the purchase price as a building down payment.
This created a win-win situation for everyone involved!
It allowed tenant-buyers to build equity with each monthly payment… and helped homeowners successfully complete more sales since tenants had real financial investment in the property.
However, recent federal legislation including the Dodd Frank Act has introduced new regulations for lease-to-own programs… and has restricted the ability to credit rental payments toward the final home purchase.
There Is Definitely Opportunity To Earn Equity With A Rent To Own Contract
One of the most powerful advantages of our lease-to-own program in Fayetteville is securing today’s purchase price for your future home, regardless of market fluctuations.
Here’s the incredible part… if Fayetteville‘s real estate market soars during your lease term and property values skyrocket… your agreed-upon price stays locked in stone.
Every dollar of appreciation that occurs during your lease period above your locked-in purchase price becomes instant equity in your pocket – that’s your ‘Mint Start’ advantage!
Is there a guarantee that your home value will increase and you’ll earn positive equity?
Absolutely not, but we always recommend doing your homework when negotiating your lease-to-own agreement. Research the neighborhood’s growth potential and property value trends in the area. This helps ensure the purchase option price reflects realistic market expectations and sets you up for long-term success.
Before we finish up… you might be wondering whether you’re REQUIRED to purchase the home when your lease term ends.
The answer is absolutely not. If you decide you don’t want to (or can’t) purchase the home when your lease-to-own agreement ends… you can continue renting if we agree, or simply move on. You’re never obligated to buy. However, we ARE committed to selling you the home at the agreed-upon price, as long as you’ve honored the contract terms (timely payments, proper care of the property, etc.).
Ready to learn more about our Fayetteville Lease-To-Own Homes Program? We’re here to help seven days a week. Call us at (844) 454-6468 or complete the form on this website to explore our current AVAILABLE LEASE-TO-OWN HOMES here >>