Lease Option

What is a Lease Option (aka Rent to Own)?

A lease option means you are leasing or renting a property with an option to buy it at a future date. A lease option agreement combines a basic lease agreement with an option and purchase contract. The tenant/buyer pays to the landlord/seller a nonrefundable option consideration that is applied to the purchase price of the home. The tenant/buyer then pays to the landlord/seller monthly rent to compensate the landlord/seller for the tenant/buyer’s use of the property. Rent payments are made on a monthly basis. A portion of the monthly payment can be applied to the purchase price of the home in conjunction with the option consideration. During the term of the lease, but before the expiration of the option contract, the tenant/buyer has the exclusive right to purchase the property as defined in the purchase contract.

Lease options agreements give individuals that couldn’t otherwise purchase a home an opportunity to build their credit up to purchase the home of their dreams.

How much option money is required?

The amount is determined on each situation. In most cases the amount required is usually 2% to 3% of the purchase price. This amount could be lower depending on the buyers financial situation and rental history

How long are Lease Options for?

Lease Options are usually two years, but can be less or longer. If the buyer needs additional time to improve their credit and finances, extensions can be made.

Can I buy the house before the lease option period ends?

Yes, you can buy the property anytime if you are financially able.

What are the benefits for a person who buys on a lease option?

Option Consideration:

a.)When you execute a lease option agreement, you pay the landlord/seller a nonrefundable option consideration. This money is your vested interest in the property and will be fully credited towards the purchase price of the home.

Rent Money

b.) In most instances, a portion of the rent that you pay each month on time may be credited towards the purchase of the house.

Who pays the taxes and insurance during the Lease Option?

We do. You pay the monthly rent and utilities etc. until you actually complete the purchase.

When do I have to have my financing ready?

Within 30 to 60 days of your option date, you will then want to get your financing process started. You can go to any lender (we can refer you to someone if needed) to get a pre-approval letter, stating the amount that you will qualify for.

What about the Sales Price?

The sales price is fixed at the time of the purchase contract. Therefore any appreciation gained during the lease becomes your equity

What do I need to do If I wish to buy a home from you on lease option?

You will need to complete the buyer’s questionnaire, give us permission to pull your credit report and fill out an application. Upon receiving your information and credit report, it will be reviewed to determine if you are qualified. Please remember, you don’t need perfect credit. Have to be able to show that can provide the option money and make the monthly payments. Once determined that you qualify, you will be contacted.

What if I don’t see a home I like?

We are always acquiring new homes. Complete the Buyer's Questionnaire and become one of the first people notified of a new property.

Credit/Approval

Lease options agreements give individuals that couldn’t otherwise purchase a home an opportunity to build their credit up to purchase the home of their dreams.