Did you know that MortgageDepot offers a specific calculation for rental credit allowed on lease-to-purchase transactions? It’s true!
When a Borrower decides to purchase the home they are currently living in and there is a lease-to-purchase option by the Landlord, the following criteria apply:
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- The Borrower must be living in the subject property for a minimum of 12 months and have a valid lease for no less than 12 months of canceled rent checks.
- The maximum rental credit allowed towards the down payment is the difference between the actual rent being paid and the market rents as determined by the Appraisal report.
- An appraisal form 1007 rent schedule must be ordered with the standard appraisal report.
For example:
Actual Rent: $2300/month
Market Rent: $1800/month
Rental Credit: $500 X 12 months = $6,000
Contact us to see what your options are when it comes to lease to purchase also known as Rent to Own options available to you. We can make it happen.
