THE ADVANTAGES OF A LEASE PURCHASE AND RENT TO OWN HOMES
- Immediate Occupancy
- Easier To Qualify For Than A Traditional Mortgage
- Repair Your Credit While Living In The Home
- You Can “Try Before You Buy”
- Build Equity From The Beginning
- A Path To Home Ownership Not Just Paying Rent
A Rent To Own Home or Lease Purchase Home can be an excellent solution for those who do not qualify for a traditional mortgage. Have you been denied a home loan for any of the following reasons?
- Damaged Credit or No Credit
- Good or Fair Credit but lack of a down payment
- Self-Employed or Cash/Tip/1099 Income
- Down Payments Too High
Many good people have had difficulties with their finances and sometimes resulting in Bankruptcy, foreclosure or garnishments. Also, the recent recession and mortgage crisis have made lenders very reluctant to lend money.
GET QUALIFIED FOR ONE OF OUR 3 DIFFERENT PROGRAMS!
TRADITIONAL RENT TO OWN
These homes are generally moving in ready and sometimes completely renovated. TURN KEY!
SWEAT EQUITY RENT TO OWN
These homes can sometimes need cosmetic work and can sometimes be bought at a discount, depending on how much work you can do.
CUSTOMIZABLE RENT TO OWN
We will do all the work, and you pick the colors and custom options.
We have homes from as low as $150,000 to over $500,000!
A Rent to Own or Lease Purchase arrangement may be the answer to owning the home of your dreams. Know the facts about Rent to Own Homes Before you sign on the dotted line. *Fill out our form at the bottom of the page to get qualified.
A Lease Purchase Option provides you with many features and benefits. The most powerful one is the rate at which you accumulate equity. Compare any lender’s loan amortization schedule to most Lease Purchase contracts, and you’ll quickly see that the Lease Purchase contract wins hands-down. Moreover, the buying power of a Lease Purchase contract can quickly and easily land you a home that you would never qualify for the conventional way. *Fill out our form at the bottom of the page to get trained.
WHAT IS A RENT TO OWN HOME?
In general, a Rent To Own Agreement allows a tenant to become a homeowner if certain conditions are met. Those conditions usually require the tenant/buyer to pay an initial Option Fee and a monthly lease payment for a specified period.
Get Qualified For One Of Our Rent To Own Programs.
THE LEASE OPTION
The Lease Option is a term that can also be referred to as the Purchase Option. This can be contained within the Rent To Own/Lease Agreement or exist as a separate contract. This provision stipulates typically the tenant/buyer’s right to purchase the home for a specified amount at the end of the lease period. There is usually a fee attached to this known as the Option Fee.
THE OPTION FEE
Although the Option Fee is paid at the beginning of the lease period, it should not be confused with a Rental Security Deposit. The Option Fee is a fee paid for the right to purchase the home. It is not refundable. In some cases, it may work as a credit towards the purchase price of the house. *Fill out our form on the right of the page to get qualified.
MONTHLY RENTAL CREDIT
In many cases, Rent To Own Agreements will contain a provision that designates a portion of the monthly rental payment as a credit towards the purchase of the home. This amount varies and can be as high as 20% of the fee.
The advantage to the tenant/buyer comes from building equity in the home during the lease period, and usually at a faster rate than a standard mortgage. It is important to note that if the option to purchase the house does not pull through, the credit is lost. At the end of the lease, the tenant becomes a buyer and is required to secure financing to purchase the home. In this example, the buyer would pay the purchase price less the accumulated monthly rental credits.
RENT TO OWN EXAMPLE
Home Price $200,000
$200,000 – $6,000 = $194,000
36 MONTH LEASE
3% Option Fee = $6000
The option fee is typically paid at the beginning of the lease. This gives the buyer the option to purchase the home for a given price at a given time (usually at the end of the contract). This fee is non-refundable and usually does constitute a down payment, deposit, or credit.
Monthly Rent = $2000
The amount the tenant/buyer pays on a monthly basis to live in the home during the lease period.
Monthly Rental Credit **Optional = $400
This amount gets out towards the purchase price at the time of sale. This accumulates during the lease period on a monthly basis. At the end of a 36-month lease, the accumulated rental credit would be $14,400.
REGULAR CHECKUPS KEEP YOUR HOME OWNERSHIP ALIVE
Rent To Own Homes can be an excellent opportunity to start building equity in a home through Rental Credits while you are leasing it. The downside to a Rent To Own Home Agreement can come if the tenant cannot qualify to purchase the home at the end of the lease period. Fill out our form at the bottom of the page to get trained.
Protecting your goal to become a homeowner means making sure that you qualify for a home loan when the time comes. Many sellers that offer Rent To Own homes require that their tenant/buyers participate in a Credit Monitoring and Repair program during the lease period.
Don’t be discouraged by this – it is in YOUR best interests as well as the sellers. While it may require a little time and expense on your part, the result is well worth the investment.
THINGS TO CONSIDER
A Rent To Own Home can be a great way to start on a path to home ownership. The down payment can be made gradually via the Monthly Rental Credit during the lease period. Qualifying for a Rent To Own Home is based more on the ability to pay rather than on credit scores. Another advantage is the ability to “Try Before You Buy.” *Fill out our form on the right of the page to get qualified.*
Keep in mind that if you do not purchase the home at the end of the lease period, you will lose your Monthly Rental Credits. At this time your credit must allow for you to qualify for a mortgage. Considering this fact, it may be an advantage to monitor your credit through a reputable and established credit repair resource.
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