ACBG Tenant / Buyer FAQs
Question:
How does a Rent-To-Own program work ?
Answer:
Our Rent-To-Own program has 5 simple steps:
1. Fill out the Rent-to-Own Application for the property you want
2. Upon acceptance of your application you will receive a lease option agreement, a lease option assignment agreement, and a lease agreement to sign. Sign and submit the agreements along with your lease option consideration payment plus 1 and 1/2 months rent deposit (we will cover your first months rent). *Deposit may include pet fees.
3. Enroll in credit restoration and mortgage counseling programs (recommended).
4. Purchase a renters insurance policy and provide us with your policy information.
5. Get your keys and move in !
Question:
How do I qualify as a tenant-buyer with ACBG?
Answer:
Qualifying for the ACBG Rent-to-Own Program is designed to be simple, and are designed for flexibility in damaged credit and special circumstances. First we make sure that you are a good financial fit for the property that you're interested in. We start by verifying the proof of income and other financial information that you submit with your application (pay stubs, bank records, etc.) We then request a tenant report, which includes your credit history, rental history, and a background check from one of our screening partners. Don't worry. We know that not everyone is perfect. We only conduct the screening to see how we can best help get you in to the home you want. Depending on the results we may recommend a credit restoration program and/or mortgage counseling to help you qualify for financing when its time to buy your home.
Question:
Is there a lot of paperwork to complete ?
Answer:
The ABCG Rent-To-Own program transaction is what is legally known as a Lease Purchase, Lease Option, Lease with Option Exclusive Option to Buy. The agreements that you must sign include a Purchase Option Agreement and a Residential Lease where the price and terms locked in for 12 to 24 months (or longer in some cases). And, when you are ready to buy the house you will sign a Purchase and Sale Agreement.
Question:
Do I have to hire a lawyer to help me?
Answer:
We will be there to help you every step of the way, and you are also encouraged to seek the advice of an attorney if possible. While some states mandate that an attorney be hired for certain real estate transactions it is not the case everywhere. In fact we will require you to hire a lawyer whenever it is mandated by that jurisdiction. You should alway beware of any business that advises you not to get a lawyer. What are they trying to hide?
Question:
Why is a purchase option premium required ?
Answer:
We charge an average of 5% for purchase option premiums. By paying a purchase option premium you are guaranteed what is known as the first right of refusal. It means that you are first in line when it's time to buy the house outright. Your purchase option premium is applied directly to the purchase price of the home. The purchase option premium is a non-refundable one-time payment. It is what we call "skin in the game". It lets us, and the seller know that you are serious about honoring your committment to follow through with everything that you need to do to prepare to purchase the home...such as credit repair and/or mortgage counselling. For more information regarding purchase option premiums and other terms, click here to see our Rent-to-Own Terms and Conditions​​​​​​​​​​​​​​.
Question:
What happens if my offer is rejected ?
Answer:
Being "rejected" doesn't necessarily mean that you are not approved in regards to credit or rental information checks . Since only one family can get the home, the landlord/seller may have to choose between several offers, so all applicants that are not chosen would be rejected for that particular property. In a case where an applicant is not selected, they can remain in our application system and be eligible to try for another home. In such cases there will be no further application or processing fees for 60 days required provided that all of their application information remains the same. After 60 days a new application and processing fee will be charged.
Question:
If I change my mind before signing the official contracts, how long does it take to get my lease option consideration payment refunded?
Answer:
Escrow funds are immediately refundable upon request prior to the finalization of the lease and kease option agreements. We simply send a release document to the escrow company of the landlord. Then you can either pick up the funds, have them mailed or have them wired to you (for a small wire transfer fee to be charged by the escrow company). Acceptable forms of payment are generally money order, certified check, or bank wire transfer (no personal checks or checks drawn from a credit line ).
Question:
Will I receive a "rent credit" ?
Answer:
What are commonly referred to as rent credits are legally termed Seller Concessions and may or may not be available, depending on the individual agreements made between the landlord/seller and the tenant/buyer. Seller Concessions are conditional upon things like on time monthly lease payments and other factors that may be listed within the agreements between the parties. Seller Concessions most ofter take the form of cash credits at closing to pay for closing costs and other fees associated with the purchase transaction. We do not guarantee that you will be entitled to Seller Concessions, but we will make every effort to see that you do get this incentive whenever possible.
