Texas home loan options beyond the usual
Rent now and build earned equity in a Texas home you’re working to own.
The Rent-to-Own Loan Program is an Earned Equity Program (EEP) for Texans whose income, credit file or rental history doesn’t fit a standard mortgage today. Texas Mortgage Home Loans is powered by The Texas Mortgage Pros, a Texas mortgage broker that coordinates each step with you.
When we say “rent,” we mean the monthly payment under your Homeownership Agreement. A share of it builds earned equity.
4 quick questions. Nothing is sent from this pre-screen.
With a standard mortgage, you’re the borrower from the first day. The Rent-to-Own Loan Program changes that order. Tule River, a government entity, purchases the home you pick using FHA financing, and you sign your own Homeownership Agreement. You live there, make monthly payments under that agreement, and a share of each payment is credited as earned equity.
That makes it worth a look for self-employed Texans, long-time renters, households that need a home that fits their pets, and anyone stuck in an older rental with high utility bills. The Texas Mortgage Pros explains the full program on its rent-to-own home program overview from The Texas Mortgage Pros.
Your monthly payment
| Renting from a landlord | Paying under the Rent-to-Own Loan Program | |
|---|---|---|
| Your monthly payment | Covers a place to live | Covers living in the home plus earned equity credit |
| The home | Owned by your landlord | Bought by Tule River with FHA financing, for you to work toward owning |
| Your agreement | A lease, usually renewed | A Homeownership Agreement built around ownership |
Simplified for education. Your agreement sets your actual payment, costs and responsibilities.
Each month you make a single payment under your Homeownership Agreement:
Not to scale. Your agreement sets the split. Want to compare costs? Try our Texas mortgage calculators.
How it works
A quick walk-through of the Rent-to-Own Loan Program process for Texas buyers.
Tell The Texas Mortgage Pros about your income, credit, savings and housing history. We review your documents and flag anything that still needs to be gathered.
We submit your file for the program’s review. If you’re pre-approved, you get it in writing along with its conditions. It isn’t a final approval.
Once you’re pre-approved, you shop for a home and sign a purchase contract. Getting the pre-approval first is the order we recommend.
Your purchase contract is assigned to Tule River, a government entity, which buys the home using FHA financing. You then sign your own Homeownership Agreement.
There are two reviews: the home’s FHA financing file and your program file. Appraisal, title and inspection items are handled, and both must be cleared.
Closing for both files is coordinated. Texas program disclosures and a waiting period apply before possession, following the written transaction instructions.
Every file runs on its own schedule. We don’t promise closing or move-in dates, because those depend on the home, the program and the disclosures and waiting periods that apply.
Who it’s for
You may be ready for a home of your own even if a standard loan file says otherwise. These are the situations the Rent-to-Own Loan Program was designed for.
Your business pays the bills, but write-offs can make your income look smaller on paper. Income can be documented with self-employment records, 1099s or bank statements, and it still needs to be steady. Compare 1099 mortgage loans and bank statement home loans too.
Every lease renewal resets the clock. With the Rent-to-Own Loan Program, your monthly payment goes toward a home you’re working to own, and part of it builds earned equity. Buying for the first time? See first-time home buyer loans in Texas.
When a rental has to work for everyone in the household, including the pets, the search can drag on. A home you plan to own lets you think long term. Ask how pets are handled before you sign.
Drafty windows and an aging AC can push monthly costs up. The Rent-to-Own Loan Program lets you move into a program-approved home instead. Ask about its age, systems and repair responsibilities, and see how much house you can afford in Texas.
A lower score or thin file can be reviewed with compensating factors, such as a record of on-time rent or utility payments. Read buying a home in Texas with a low credit score.
Other options might fit better. A broker can compare the Rent-to-Own Loan Program with FHA home loans in Texas, non-qualified mortgage loans and Texas down payment assistance programs so you can see them side by side.
Pre-screen
Answer one question at a time. It takes a couple of minutes, and your answers aren’t sent anywhere. At the end, you can continue to our short Get Prequalified form so a broker can review your situation.
This pre-screen is for informational purposes only. It is not an application, approval, pre-approval or commitment to provide financing.
Would you rather talk it through? Call (713) 999-6151 or use the Texas Mortgage Home Loans contact page.
Your Homeownership Agreement is a long-term commitment, so take your time with these:
FAQ
No. The Rent-to-Own Loan Program was built for buyers whose finances don’t fit the standard mold, including self-employed and commission earners. Your income still needs to be steady and documented.
You’re working toward buying. Tule River buys the home with FHA financing, and your Homeownership Agreement lays out the path to ownership. “Rent” on this page just means your monthly payments under that agreement.
Tule River, a government entity, buys it using FHA financing after your purchase contract is assigned to it. You sign a separate Homeownership Agreement.
Ask before you sign, because it depends on the agreement and the program provider. Your answer to the pets question only helps us find homes that fit your household.
We can’t promise that. Every home is different, so ask about its age, condition and systems, and compare monthly costs before you commit.
No. A program pre-approval has conditions, and two files still need to clear: yours and the one for the home’s financing. The CFPB also explains that a preapproval isn’t a guaranteed loan offer.
That depends on your agreement. Some arrangements may refund or transfer a portion, but the Rent-to-Own Loan Program is meant for people who plan to buy.
The pre-screen on this page isn’t an application, approval or commitment to provide financing, and your answers aren’t sent. To have a broker review your situation, continue to the Get Prequalified form.
Yes. Texas Mortgage Home Loans is powered by The Texas Mortgage Pros, LLC, a Texas mortgage broker, Company NMLS #2665861.
These official pages support the facts on this page:
Talk with a Texas broker about whether the Rent-to-Own Loan Program or another Texas home loan option fits your income, household and goals.
Equal Housing Opportunity.
The Texas Mortgage Pros, LLC | Company NMLS #2665861 | Jason Turner (Broker), NMLS #286357 | Equal Housing Opportunity | www.nmlsconsumeraccess.org
Texas Mortgage Home Loans is powered by The Texas Mortgage Pros, LLC and is not affiliated with HUD, FHA or any government agency. This page is for information only and is not a commitment to extend credit. All financing is subject to review and approval, and program details may change without notice.
