Rent To Own Homes [Form Confirmation]

Congratulations on starting your homeownership journey!

RTO
RTO Program Eligibility Requirements:
You have a minimum gross household income of $40,000 or more per year.

No member of your household has an open or unsatisfied Chapter 7 bankruptcy.

No household has an order of eviction granted against them within the last 5 years or filed against them within the last 12 months.*

No household member has an unsatisfied residential rental collection exceeding $250 that originated within the last 3 years.**

No household member is on any OFAC sanctions lists, including the Specially Designated Nationals and Blocked Persons lists, or a registered sex offender or sexual predator or otherwise subject to reporting requirements of any state, territorial, or tribal sex offender registry.

No household member has had a felony conviction within the last 6 years.
*Any household member that has an order of eviction within the last 5 years or a filed eviction within the last 12 months will not have their income included.
**Any household member that has an unsatisfied residential rental collection exceeding $250 that originated within the last 3 years will not have their income included.
Fico scores
Income Verification
Maximum allowable debt-to-income ratio: 50% of monthly income less monthly debt
(45% for household weighted FICO under 620)
Maximum allowable rent-to-income ratio: 40% of monthly income less monthly debt
(35% for household weighted FICO under 620)
Traditional Employment
• 2 most recent pay stubs.
• If relocating or have secured a new position, an offer or transfer letter on the employer’s letterhead, identifying the income and start date, in PDF form, signed by the employer.

Self or Contract Employment
• Most recent tax return and 2 most recent personal or business bank statements.
• If a self-employed position was acquired recently and a tax return is not available, then EIN documentation will also be required.
• If relocating and the business is location-based, bank statements establishing that such business has been operating for at least 2 months in the state to which you are relocating (as listed on application) are required.

Military
• 2 most recent pay stubs.
• If transferring, 1 recent pay stub and transfer letter are required.

Child Support/Alimony
• Court documents awarding support, together with documentation establishing support has been paid on time for the last 2 months.

Social Security/VA Disability
• Most recent award letter.

Annuity/Retirement/Pension
• 2 most recent benefit statements.

Investment Rental Income
• Most recent tax return, executed 1-year lease, together with documentation establishing rent has been paid on time for the last 2 months.

Unemployment
• Most recent bank statement and award letter.

Lump Sum Prepayment
• In lieu of income verification documentation set forth above, you may elect to pay the entire first year’s rent and Security Deposit (which shall be due and payable at the time a purchase contract is executed for your selected home).
• To qualify for this option, you must show available funds equal to or greater than 14 months of rent in a liquid checking and/or savings account on a current bank
statement. (401ks, IRAs, or other retirement accounts are not eligible forms of documentation to qualify for this option.)
credit repair

STEP 1 – Receive invite via email.

Dana Ash-McGinty or an ASH MCGINTY Team Member will email you an invite from one or both of our institutional partners to start the easy online application process. The application should only take 2 minutes to complete.

If you don’t receive the email, please be sure to contact us.

Note: We work with two institutional partners. If you receive an email invite from both, you can choose to apply to either or both. This is your choice.

STEP 2 – Apply online.

Prospective residents start the process by filling out a Pre-Qualification Application.

RTO homes

STEP 3 – Get a Pre-Approval.

→ In 1 business day you will receive an approval answer.

STEP 4 – Submit supporting documents.

Once you are approved based on the pre-qualifications, you will be required to submit your supporting documents.

[See Income Verification above]

STEP 5 – Receive a maximum sales price and start looking for your new home!

After your supporting documents have been received and approved, we will receive a maximum home price amount.
Prospective residents will work with an ASH MCGINTY Realtor® to find a home in an approved community. Together we will start looking for your new home!!
Once a home is identified and approved, the home will be purchased by one of our institutional investors. (The outcome of which will depend on certain conditions being met such as agreeing on a purchase price with the seller, a satisfactory inspection, attorney review of the purchase contract, and other closing conditions being satisfied.)

FAQs

Our rent to own program allows you to find a home that you want to rent initially, but you may also want to buy at any time within the next five years.

We believe that there are many households that may be thinking about buying a home but may need to rent at the current time.

You can lease the home for up to five years and later purchase the home at a predetermined price.

There are certain minimum criteria for the program. Your household must have a minimum annual income of $45,000. You must have stable employment. If you or anyone in your household has a history of eviction or a pending bankruptcy, you will not be accepted into the program. Everyone in your household will be subject to a criminal background check.

Every member of your household that is 18 years of age or older must complete the Pre-Qualification Application and the Full Application.

The Full Application requires residence and employment history, for each member of the household. You also must provide income verification for each member of the household whose income is to be considered in determining the rent approval amount in order for your application to be considered complete. (If you are moving from a different state or starting a new job, we will need confirmation of your new job and income.)

There are several factors that’s taken into consideration when reviewing an application, which include household income, rent-to-income and debt-to-income ratios, rental and housing history, employment history, criminal history, and FICO® scores.

You will typically receive a decision on your Full Application within 1 to 3 business days of receiving all required information.

There is a one-time Application Fee of $75 per household that is paid online as part of the application process. This Application Fee covers all applicants in the household.

There are several factors that go into consideration when reviewing an application, which include household income, rent-to-income, and debt-to-income ratio, rental and housing history, employment history, criminal history, and FICO® score. The profile of the entire household is considered when reviewing an application.

Dana Ash-McGinty will work as your REALTOR® to search for a home. Generally, this means that the home should be:

  1. Located in an approved community;
  2. Listed for sale up to $450,000, exceptions apply;
  3. Minimum of two bedrooms (most homes are 3-4 bedrooms);
  4. Located on a lot no more than two acres;
  5. A single family home or townhome (condos are not eligible);
  6. Free from material deficiencies;
  7. No guest houses/ in-law suites with separate entrances;
  8. Short sales, auctions, and REOs are not eligible;

Yes. Generally, a deposit equal to two months’ rent is required. This deposit is not applied towards your rent. If you decide to leave the home at the end of any one-year lease term and you have been in compliance with the terms of the lease and return the home in the same condition it was in when you moved in (normal wear and tear excepted), the full deposit will be returned to you or credited to the purchase price if you buy the home.

The full deposit (less any outstanding charges) is also returned to you if you exercise your Right to Purchase the home.

On average, it takes approximately 5-6 weeks from the time we enter into a purchase agreement for a home until the day you are able to move in.

There are a number of variables that may affect the move-in timeframe, including the length of negotiation with the seller leading up to when we enter into a purchase agreement, the renovations you request, etc. You will stay informed throughout the entire purchase and renovation process so that you are aware of this timing.

No. Monthly rental payments are not applied to the purchase price of the home. If you decide to exercise your Right to Purchase, you must pay the predetermined price as set forth in the Right to Purchase Agreement.

Just give notification at any time that the Lease is in effect that you would like to exercise your Right to Purchase. However, you must provide notice in writing at least 60 days before you want to complete the purchase. Once you provide the notification that you want to exercise your Right to Purchase, you will be contacted to get the process started.

You can exercise your Right to Purchase at any time during your Lease. However, you must provide written notice of your intent to exercise at least 60 days before you want the sale to close. In addition, the closing date must occur before the end of the applicable lease term.

Pets are welcomed with the following provisions:

  1. Cats and Dogs: You are allowed up to three cats or dogs with a max weight limit of 180 pounds total. We allow all dog breeds, however, certain dog breeds may be restricted by local regulations and Homeowner’s Association rules.
  2. Birds: Domestic birds are permitted.
  3. Reptiles/Amphibians/Fish: Aquariums are limited to 20 gallons.
  4. Farm/Livestock: All livestock and farm animal pets such as pigs, horses, chickens, and goats are not permitted.
  5. ALL exotic, venomous, and verminous pets are not permitted.
  6. Other: The list of other restricted animals includes but is not limited to: pigeons, rabbits, chinchillas, skunks, raccoons, and monkeys.

The Lease Agreement outlines applicable pet fees. Service and assistance animals are exempt from any restrictions, pet fees, or deposits with proper documentation.

More Questions?

Still have questions about the RTO Program? Contact us.