How to go from renting to owning your home

In an economy where rent prices are skyrocketing, there has to be a better solution for people who are growing discouraged by the Triangle housing market.

Raleigh rents have increased 22.5% from 2022 to 2023. This trend may continue as demand for housing continues to grow. With an estimated 5,000 new residents moving to the Triangle every month, the housing market is more difficult.

If you’re looking to buy your first home in Raleigh, Durham, Cary, or the broader Triangle area, your options as a renter are limited: 

• You can try to qualify for a low down payment mortgage, or combine a mortgage with a down-payment assistance program. But you will likely have to include a financing contingency in your offer, which will make it harder to win the deal. A low down payment mortgage (like an FHA loan) also includes a requirement for mortgage insurance, increasing your monthly mortgage payment.
• You can look at rent to own homes near you. Rent to own houses in Raleigh, Durham and Cary can be an option as most rent to own companies will let you pick a home in the local market. The big drawback of rent to own homes is that you are not building real equity in the home and may not be able to buy at the end of the program term. We believe there are better options than lease to own programs but they may be viable short-term while you get your credit in shape.
• If you’re lucky enough to have family or friends who can help, you might be able to borrow or receive a gift for the down payment. While this is attractive, it may not be open to everyone. As a first-time buyer, you should also know that you need to disclose the source of funds for the down payment to a mortgage lender. Most lenders don’t allow borrowed funds to be used for the down payment and not disclosing borrowed funds on a loan application could be a federal crime.  

However, homeownership may not be as far in your future as you think. With a new path to homeownership, Ownify is helping first-time homebuyers enter the market with a 2% down payment (lower than most rent-to-own programs in Raleigh), fixed monthly payments for five years, and equity ownership from day one. With fractional ownership, you don't have to worry about a limited selection of rent to own homes in your area, debt to income ratios, and minimum down payment hurdles. You can get started on your journey as a powerful cash buyer.

If you think the dream of homeownership is out of your financial grasp, think again. Here’s what you can do to make that move from renting to homeownership.

Understand your financing options. 

If you’re looking for a low down payment requirement, consider Ownify. We require as little as a 2% down payment and cover the other costs to buy a home. No hidden fees. Zero surprises. And with Ownify, gifts and loans to help you get started are most welcome.

To determine how Ownify could work for you, complete our pre-qualification process. It’s free, does not affect your credit score, and typically takes just a few minutes to complete. We evaluate each application individually and consider your income and expenses, credit score, and payment history to determine eligibility. Upon qualification, we provide your customized budget instantly to help in the search for your dream home.

Partner with a real estate agent. 

Once you understand your financing options and know how much you need to save for a down payment, you’re ready to switch from scrolling through online property listings, and #homegoals posts on Pinterest and Instagram, to finding your dream home. Now it’s time to partner with a trusted real estate agent. Ask local family and friends for a referral to an agent who helped them buy their home or, when you get pre-qualified with Ownify, our team will match you with an accredited local agent who is deeply passionate about helping first-time homebuyers just like you get into the home of their dreams.

Reap the benefits.

Homeownership is about enjoying the benefits of financial stability and a place that truly feels like your own for many years to come. It’s the ability to add a patio to the backyard, the opportunity to share memories with the ones you love most, the chance to enjoy fixed monthly payments, while knowing you’re building equity with every payment, and so much more. 

Ownify is reimagining the homebuying process, so first-time homebuyers aren’t stuck in the cycle of rising rent and uncertainty. Don’t just take our word for it, Ownis Zac and Skylar recently shared their experience buying a home in partnership with Ownify. “What really drew us to Ownify was their mission,” Skylar said. “They were passionate about helping first-time homebuyers make it through an otherwise scary process and also make it enjoyable. They were super helpful at answering all of our questions quickly, helped with all of the initial costs in buying a home, provided countless resources and served as a guide for us from start to finish.”

Learn about your eligibility for the Ownify program and submit your pre-qualification here.

©2023 Ownify, Inc. All rights reserved. Frank Rohde is CEO and Founder of Ownify.