Meet Landis: A New Way to Rent to Own
My NC Homes has never been a big fan of Rent to Own;because 99% of the time these offers were never truly meant to actually work. They were designed so that theBuyershave very little chance of actually ever owning the home so that the Seller could re-sell the home 1-2 years later to another Buyer and then another and another etc. If a Buyer was able to actually fulfill the Seller'sRent to Own Contract,the Seller still won because they'd gotten the buyer to end up paying them well above market rate. We've written about this previously in our Post Rent-to-Own is Never a Good Deal.
Meet Landis: A New Way to Go from Renter to Owner
Are you roughly a year from being able to buy the home of your dreams? Have you tried to get a mortgage only to be rejected or perhaps you've had a prior foreclosure or been forced to declare bankruptcy several years ago. Perhaps you're newly graduated and have no real job history, or just recently relocated to the area and haven't started your position yet. My NC Homes and Landis can help. My NC Homes has partnered with Landis who offer a new approach in financing to renters looking to become homeowners. Landis is low risk and is a renter solution for home buyers in North Carolina, looking to grow permanent roots in the Triangle Area.
What is Landis?
Landis facilitates renters in buying the home that they want by buying it for them and then renting it to them for up to 12 months. Landis offers incentives and credit counseling to help buyers increase credit scores while building a downpayment.
How does Landis work, exactly?
The best way to start is with one of the Buyer Brokers at My NC Homes. They can help you to decide what your best option is going to be. If Landis is your best option you'll apply through the Landis website, let them know who you're working with at My NC Homes, choose your dream house, and Landis will buy the home and rent it to you while you build credit and downpayment. You can buy the home at any time from Landis. You will be getting a mortgage as soon as you qualify, with help from Landis. In this way, Landis is your landlord and you are renting from Landis, but instead of paying rent, you are paying your way into your new home. Landis is a one year program and qualification is determined before you choose you go out looking for your home
What is the process?
Apply on the Landis site and approval generally takes less than 2 days. The process takes into account what you can afford in rent, in addition to money for a downpayment, and what needs to happen in order for you to be approved for a mortgage within the next 12 month period. Then we go out and find you a house and Landis will purchase it. Your monthly payment takes into account rent and a portion that's set aside for you downpayment and closing costs. At the end of the term, Landis helps you find a lender or your agent at My NC Homes can point you to one of our preferred lenders to purchase the home. Landis works with FHA, VA, and USDA and other assistance programs to get you the mortgage that is right for you. If you for some reason cannot buy after one year, you can keep renting until you are ready to buy.
Where are the homes I can buy with Landis and what are the price ranges?
Landis operates in Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina, Pennsylvania, Tennessee, and West Virginia. My NC Homes is licensed in North Carolina and is one of Landis's preferred Realtors. Search properties here, www.mynchomes.com. Landis will buy homes up to $400,000. Properties within Homeowner Associations are fine as long there aren't rules prohibiting rentals.
How does Landis benefit?
Landis profits from the portion of your monthly payment that isn't being used for your downpayment and closings costs and the sale price of the home is 3% above the price they paid for the home when they purchased it. Landis does not take commissions or fees from agents. When Landis buys the home, we get paid the Buyer Broker commission that is being offered by the seller at that time. (Typically this is somewhere in the 2.4 -3% range. There are no buyer fees to work with us.
My NC Homes feels good about offering Landis and their Rent to Own solution to our buyer clients. It's an alternative home buying model that definitely a good option for certain buyers. We do suggest talking about this with us first to see if it's a good option for you or if there may be some better options.