Housebit for Buyers – Monthly Payment-to-own concept.
Today’s buyers face several obstacles – having enough for a down payment, mortgage financing and finding a good quality property. Through the Housebit platform all of that is taken care of. Buyers can obtain a pre-inspected Housebit property online with a click, with all the financing taken care of and without having to provide a down payment or closing costs.
Instead of a down payment, purchasers enter into a residential contract for sale and purchase with a closing date in 3 years. During that 3-year period, purchasers make a monthly payment to Housebit which includes a payment equivalent to a mortgage payment at prevailing rate. The buyer is responsible for all other payments a home owner would incur such as property taxes, condo fees (if applicable), insurance, utilities etc.
In other words, the same obligations that they would have if they bought the property in the traditional way. And at the end of the 3-year period, the amount that is due to purchase is reduced by the effective reduction in principle from their mortgage-equivalent payments.
At the end of 3 years, the buyer has 3 options:
If a purchaser chooses option 1, it is not unlike like a rent-to-own scenario. If they choose option 2, all payments would be as if they had paid rent during that period. And if they choose option 3, the process just starts over.