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Freedom Builder

Bank Funded Rent to Own
Facts & Guidelines

Liberty One offers the Freedom Builder because there are simply many people who simply do not qualify for a mortgage at this time. Either their credit scores are too low, they don't have U.S. citizenship status, or their tax returns do not show enough income. This program overcomes all of those issues and many more. Here are some detailed underwriting guidelines for the Freedom Builder:

Colorful homes representing rent-to-own opportunities

Who Is This For?

People who just don’t qualify for a traditional mortgage:

  • Any U.S. citizen
  • Permanent and non-permanent resident
  • An ITIN resident
  • A DACA resident

FICO & DTI Needed

This ownership program has these FICO requirements:

  • 580+ FICO approved
  • 500 - 579 FICO approved with compensating factor
  • No FICO allowed
  • 1 day out of BK allowed

Income & Ratios

Income calculation parameters:

  • No W2 or 1099
  • No tax returns
  • 3 months bank statements
  • Or last 2 months paystubs

Key Guidelines:

  • Must be within FHA county limits
  • 3.5% down payment
  • SFR / Condo / Duplex / Double Wide ok
  • Up to 6% seller concession allowed
  • Gift funds allowed
  • Non-occupying co-borrowers allowed
  • Homeowners insurance required
  • Property must pass FHA inspection
  • FHA appraisal will be used
  • Termite inspection required
  • Home warranty needed in most cases

Payments & Equity

Once the client is pre-approved for a purchase price, the purchase contract is written in their name with an assignment to the bank. The monthly payment is the fully amortized PITI. The interest rate is generally 1% higher than the going FHA rate. After 6 months, the client may refinance the home and even assume the underlying FHA loan.

The client may sell the home after 6 months and 100% of the equity is theirs with no additional fees due to the bank at that time.

Rent-to-Own Program Estimator

Freedom Builder Cost Calculator

Estimate closing costs, monthly payments, and seller contribution limits for a Freedom Builder rent-to-own purchase. This is not a traditional mortgage — figures are estimates only.

Prepared · NMLS# 2732288
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This is not a guarantee. Final payment may be higher or lower. Loan amount used: .

Figures are estimates modeled on the Liberty One Home Loans Freedom Builder fee example. Exact fees are set once the lender and title company fully calculate the individual transaction.

Liberty One Home Loans

NMLS# 2732288