Most Frequent
Q & A
We’ve put together some commonly asked questions to give you more information about the DM Rnt2Buy Homeownership Program. If you have a question you can't find an answer for please Contact Us.
A.
Davas Management Inc. or its partners will purchase the home that YOU choose, and you will be given the exclusive right to purchase the home at the end of the agreed-upon term. Throughout this period, we work hard with you to help you save for your down payment and improve your credit score. At the end of the term, you will be in a position to qualify for a mortgage through traditional lending institutions and the property title will transfer into your name. We are obligated to sell the home to you at the end of the term at a pre-determined price and 100% of the Initial Option Consideration along with the Monthly Consideration is credited towards the purchase price of the home as down payment.
A.
Yes, you will need an Initial Option Consideration, calculated based on the purchase price of the house and whether you are self-employed, a small business owner or an employee. Our Rent-To-Own program offers certain flexibility when it comes to the initial option Consideration amount. We will work with you to determine options.
A.
Our mortgage specialist will complete an assessment and determine your ability to get financing in two or three years. You will also be provided with an action plan that will help you get your credit score in order.
A.
Generally speaking, it depends on your individual situation, however, we have helped other self-employed individuals to become homeowners through our Rent-To-Own program.
A.
During the Rent to Own term, first and foremost, you will be a tenant and you will be responsible for the regular maintenance of the house, including snow removal and lawn maintenance and we will be responsible for any major repairs.
A.
We pay for the property taxes and building insurance, as part of our investment in you, however, at the end of the Rent to Own term when title is transferred to your name, you will be responsible for these expenses. We will help you understand these costs at the end of the Program so that you are well prepared for handling them yourself.
A.
One thing that our clients find as a large benefit is the fact that the purchase price of the home is fixed at the beginning of the Program. The purchase price is based on a conservative estimate of the future value of the property and is guaranteed for the duration you are in the Program. This means that regardless of how much the home appreciates over the term of the agreement, your purchase price will not change.
A.
The monthly payments you make can be reduced by increasing the Initial Option Consideration Therefore, the more funds you have at the beginning of the Program the less you will likely use towards your monthly payments.
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When you evaluate all the factors, our all-inclusive payment schedule is actually LOWER than paying a traditional 5% interest rate mortgage.
A.
Your monthly payments will approximate the payments you would make on a new mortgage with all of the costs considered, such as property taxes and insurance. We will also work with you to ensure you purchase a home that you can afford. The goal of the program is for you to successfully purchase the house at the tend of the term, so we will work hard on the front-end to ensure we place you into a house you can afford.
A.
You are ultimately responsible for all obligations under the terms and conditions of the Program. This means that you are responsible to pay the monthly payment in full and on time for each payment, just as you will when you take over the mortgage. If you miss a payment, you will be considered to be in default under the terms and conditions of the Program. Similar to all other traditional rental situations, if you are in default for a period of more than 30 days, we reserve the right to commence legal proceedings to recover and secure our interests in the property.
A.
We have properties that are considered readily marketable residential dwellings that are located in a market with demonstrated ongoing re-sale demand, to help you choose a property that will provide you with a sound investment. Whether you need schools nearby or access to public transit, if any of our properties meet your needs our Realtors will help you choose the home that fits your lifestyle and budget best.
A.
There are typically two outcomes to this scenario – we can either extend the Program length if you need more time, or you can choose to walk away from the home. If you choose to walk away from the home, you will forfeit your non-refundable option consideration and incur other consequences as a result. There are significant costs involved in selling a property that has been specifically purchased for your benefit, which include (but may not be limited to) REALTOR commissions, mortgage repayments, payout penalties, interest costs, holding costs, investor payouts, and marketing. We will help educate you that we are making a significant investment in YOU and we want to deal only with committed individuals and families.
A.
The entire length of the process typically takes anywhere from 6 to 8 weeks from start to finish. The approval process usually takes 1 to 2 weeks, at which point we will then design the Program to meet your specific individual needs. Selecting a home and moving through to acceptance can take anywhere from 2 to 4 weeks to complete. After all conditions have been met on the acceptance, you should expect another 2 to 4 weeks for closing before you receive the keys to your brand-new home!
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The process begins with you filling out an application. Let us know and we will contact you to get the process started and get you on the road to becoming a proud homeowner!