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AmeriFirst Rent to Own Program

Frequently Asked Questions and Answers

1. What happens if after the rent-to-own agreement, I am unable to qualify for a loan?

-Any option monies given are non-refundable. Remember that the seller took the home off the market for you. Any down payment savings accrued will be returned.

2. Will Amerifirst serve as the lender for the home purchase after lease expires?

-If you so desire, yes. It is not mandatory that you use AmeriFirst.

3. Is Amerifirst guaranteeing a loan? If so, how much will the interest on the loan be?

-AmeriFirst does not guarantee the loan. In regards to rate, no one can know what the future will be. That’s why all candidates for the program are Pre-Qualified at 2% over today’s interest rates; that way we are more confident that if rates go up, then the new buyer may still be OK.

4. Will there be an upfront fee besides the $495.00 cashiers check? If so, what will the other fees cover?

-No upfront fees additionally. The only other costs / fees you may incur would be those related to your ultimate purchase (i.e., appraisal, survey, etc.).

5. What will be considered as a down payment for the property after the rent-to-own agreement ends?

-Your down payment will consist of any funds you have (checking, savings, grants, gifts from blood relatives, etc.) and any monies accrued on your rent to own agreement.

6. During the rental period, who will be responsible for maintenance?

-If you enter a rental agreement, the landlord is responsible for all maintenance / repairs unless agreed upon in writing in advance.

-If you enter an option agreement, then you are responsible for all maintenance / repairs generally speaking, except for structural issues.

7. Will interest be locked beforehand?

-NO. Interest rates can be locked for up to 180 days prior to closing. (See answer #3)

8. Who will be responsible for property taxes during rental period?

-The optionor (aka, the landlord).

9. When and How is the purchased price determined? If it’s by appraisal, who will hire the appraiser?

-The Purchase Price is determined and agreed upon prior to the option agreement is executed.

10. What portion of “rent” payment will be credited to the home for future purchase?

-This is decided on a Case-by-Case basis to be agreed upon in advance by all parties involved.

11. Under what circumstances could the contract be voided (per say one late payment, etc.)?

-Under the same circumstance as any other lease agreement re: late payments.

12. Does the buyer build equity in the property through initial or recurring payments?

–NO.

If so, will AmeriFirst be entitled to take equity out of property?

–NO.

13. During rental period, will there be any tax exemptions I will be able to claim (tax purposes)?

-NO.

14. How much down payment/closing costs will be required at time of purchase?

-FHA is currently requiring a minimum of 3.5% down payment.

-Closing costs range from 4-6% of the purchase price.

15. Will I be able to get the purchase price, down payment option and interest loan in writing before signing rent to own contract agreement (purchase date included)?

-YES, everything will be in writing.

-NO, the interest rate can not be locked. (see answer #3).

-NO, purchase date / closing date can not be set.

16. What happens if the house is worth more at the end of the lease term than the price on which we’ve agreed?

-The Tenant / buyer wins!!! The Tenant / buyer has appreciation and equity.

17. What happens if the house doesn’t appraise for the agreed-upon sales price?

-The Tenant can make up the difference or decline the option to purchase.

-Typically the contract can be (and usually is) re-negotiated.

AmeriFirst - 4901 NW 17th Way #101 - Fort Lauderdale, FL 33309
Office Phone: (954) 771-6604 Fax: (954) 771-6631

Licensed Mortgage Bankers & Real Estate Professionals

Corporate Headquarters in Fort Lauderdale, Florida

Rent to Own / Portfolio Properties and Mortgages / FHA Approved