Lease Purchase Program
Through the years, we have helped many clients who have previously filed bankruptcy or gone through a foreclosure. In several instances, these clients have been able to move in to the home they are seeking prior to being able to qualify for conventional mortgage financing. The lease/purchase program we offer is designed to help people find homes when traditional mortgage loans are not yet within reach.
Read on to discover if the Lease Purchase Program might be a solution for you in purchasing a home.
How much money is required for a down payment'?
The money that you pay at the time you move in to the home is called the 'option payment'. This payment is what guarantees a purchase price based on today's values for a specified period of time. The option amount can vary somewhat depending on which home you are interested in purchasing, but a typical minimum amount is 5% of the purchase price. This amount is roughly the same as a conventional loan will require.
What happens to my option payment?
The option payment is applied to the purchase price of the home. For example, if you are purchasing a home for $150,000 and put down a $7,500 option payment, you have the option to purchase the home for $142,500. If for whatever reason you are unable or decide not to purchase the home, your option payment is nonrefundable.
How long do I have before I can and when must I purchase the home?
Upon receipt of your option payment, you can purchase the home as soon as you qualify to do so. When the agreement is made, we will establish how long your option to purchase the home is valid. Depending on your specific situation, we will set a time table that is attainable based off of your credit. Most option agreements are less than 2 years.
How much of my monthly payment is applied toward my purchase price?
Typically, none. In an effort to keep monthly payments as low as possible, they are factored off of an interest only amortization schedule.
Who pays for the real estate taxes and for the homeowner's insurance?
Both real estate taxes and homeowner's insurance on the structure are paid for by the current owner until such time that you exercise your option to purchase the property. It is a good idea for you to continue to keep renter's insurance on your personal belongings.
Click here and enter your email address to apply for this program or just to learn more information.