Investment Firms Give Renters Option to Buy

Big banks have unlocked an untouched source of income by offering consumers with bad credit a chance to rent a home, improve their credit, and then buy the home. This method was popular in the 1990’s, but when mortgage accessibility increased, the need to rent before owning was rendered unnecessary. Both investors and consumers benefit. Investors profit from the recovering housing market, while consumers are able to save money for a down payment while renting.

Home Partners of America, one of the fastest-growing rent-to-own companies, gives families without access to mortgages an opportunity to own a home. Co-founder William Young saw potential in the market, and also wanted to help families live in a home, even in a struggling economy. “What really frustrates me personally is that a lot of people I grew up with would have trouble getting access to mortgage credit today.” Given the current state of the housing market and little access to credit, Home Partners is both feasible and sustainable.

The Home Partners program is simple. First, the company teams with real estate agents in approved communities to buy homes. After they purchase a home, they lease it to a consumer that does not have access to a mortgage. The tenant then attempts to improve their credit over the next few years, and in most neighborhoods, the consumer has the option to buy the house within 5 years. The only catch is that rent and the price of the home increase over the 5 year period. However, the tenant has the option of renting or buying another home if they do not like the price of the home. So far, Home Partners is in 30 metropolitan areas in 15 states. By the beginning of next year, Home Partners hopes to expand into 5 more states.

Click here for the full article from The Wall Street Journal, or click here for more Front Street news.

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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