Lease To Buy Buyer’s Advantages
- Equity growth: Your rent payments will actually go toward an investment to build equity in a home. Every month a portion of your on time rent payment is credited towards the purchase of the home via a seller’s concession.
- Option deposit is credited to the price of the home: You as the buyer/renter pay the a non-refundable option deposit. This money is your vested interest in the home and will be fully credited when you buy the home.
- Minimum expenditures out of pocket: Here, you’ll only pay an application fee, the first months rent, a normal rental security deposit, plus the non-refundable option deposit.
- Flexibility in requirements: Restrictions are up to the seller which means there could be more flexibility with credit scores, etc. You prove your ability to purchase the home by making rent payments on time every month.
- Control of the Home: You as the buyer have full control of the home while paying rent. You’ll get to learn the ins and outs of the home, what you might want to change in the way of home improvements, etc. before actually owning it.
- No Taxes, Less Liability: Since you as the buyer do not yet own the home, you do not have to pay property taxes up front, etc. So you have time to prepare for the cost of the home ownership and you get to learn about the total cost of home ownership by being living there.
- Minimal Maintenance: Typically large maintenance problems or any maintenance problems that exceed a certain amount of money are delegated to the seller.
Lease To Purchase Guidelines
- The final sales (option) price of the house will be predetermined and locked in based on the duration of the lease term. This will be reflected on the lease to purchase agreement.
- On a case by case basis a portion of the on time monthly payments made could be credited as an additional seller concession towards the purchase of the house. If this applies the funds will be credited separately.
- A percentage of the purchase price of the home is required to be paid as a Non-Refundable option consideration. This will be credited to the purchase at the time of closing on the sale of the house. The closing on the sale of the house can happen before the expiration of the lease agreement.
- Applicant(s) must to be able to qualify for a mortgage within the time frame of the duration of the lease. Maximum of 2 years.
- Credit verification as well as income and employment verification will be conducted on all applicants listed on the lease to purchase agreement.
- We work with you, the mortgage brokers and credit repair consultants to establish a program to enhance your chances for approval of a mortgage loan.
- If the tenant\buyer defaults on the monthly payments and or does not purchase the house prior to or at the end of the lease term. All accrued credits and the option fee will not be returned to the tenant\buyer.
- These are the basic guidelines, other stipulations may apply. Please refer to the actual lease\purchase agreement.
- It is up to the tenant\buyer to conduct their own due diligence in any real estate transaction.