How It Works - Buying on a Rent to Own / Lease to Own   

Why Might You Want to Rent-to-Own / Lease to Own ?

               Common Causes of Mortgage Denial Include:

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Choose a Rent to Own! Key Elements Include:

• Feel pride of home ownership
• Make it your home!  Decorate, update, and improve the house as you like, which can increase the value of your investment
• 1-3 year lease term typically, giving you time to save up the down payment and establish or improve your credit so that you may purchase the home
• As low as 3% cash upfront for the Initial Lease Option Deposit, depending on income and term length
• At the end of your term you will have acquired a significant down payment due to the Monthly Lease Option Deposits, which are added to your Initial Lease Option Deposit for a Total Lease Option Credit
• A set purchase price for when the term is up, agreed upon when signing the lease

            How About an Example…

This is strictly an example, if you enter into a Rent to Own contract with us, we will provide a custom plan based on the home and your situation.

What Are the Initial and Monthly Lease Option Deposits?

The “Initial Lease Option Deposit” gives you the right, but not the obligation, to purchase the home for the agreed upon price when the Lease to Own term is up.  You pay as little as 3% of the purchase price up front for this right, in what is called the “Initial Lease Option Deposit”.  What this means is that if you decide to buy the house (which should be your intention when entering into this contract), the Initial Lease Option Deposit you paid upfront is applied towards the down payment.  This Initial Lease Option Deposit is non-refundable, so if you decide not to purchase the house, it is forfeited.

What Are Lease Option Credits?

Each month a portion of your monthly payment is credited to you as a “Monthly Lease Option Deposit”.  This Monthly Lease Option Deposit, plus the Initial Lease Option Deposit build up as “Lease Option Credits”, which are credited towards your down payment upon purchasing the home.  To qualify for a mortgage, the bank will want to see that you have been able to save up a down payment, and that is exactly what these “Lease Option Credits” accomplish.

Disclaimer

This website is purely for information purposes only, and is intended to assist people in understanding how the strategies we use work. Furthermore, it does not purport to provide legal advice and is not intended to form a contract or any part thereof. No part of this website is intended to modify or take the place of any clause within any agreement that you may or may not be a party to, and no liability or reliance herein should therefore be made. You are strongly advised to obtain and rely upon your own independent legal advice should you wish to proceed and enter into an agreement with us, or any other party.