Non Qualifying Lease Purchase
If you...
- Are new to the area, and want to lease before you make the commitment of purchasing
- Don't qualify to rent an apartment because of your credit score
- Have been turned down for a new home because you don't qualify for a mortgage
- Want to move into a new home now, and close on the home later
Our Non-Qualifying Lease Option to Purchase program is an opportunity for you to re-build your credit and buy a home. We will:
- Review a copy of your current credit report with you
- Offer to send you through Dave Ramsey's "Financial Peace University"
- Refer you to a local mortgage company when you are ready to purchase
Quick & E-Z Move-In Process
When you get a Lease-Option home from us you can move in quickly and easily. Most of our properties are available for move-in within 2 business days.
Option Money
To move in to one of our homes, you will typically pay 3-4% of the sales price as option money. This money qualifies you to move in and gives you the option to purchase the home at any time during the lease. 100% of the option money goes toward the purchase of the home. After paying the option money and first months rent, you can typically get moved in within two business days. The option money is non-refundable if you do not exercise your option to purchase the home.
Monthly Payment
You will receive 5% credit of all your monthly payments at closing. You will be responsible for renter's insurance policy to cover your personal belongings.
How the Lease is structured
Some lease purchase contracts are set up for you to purchase within a fixed time period (generally 2-3 years). If you are unable to purchase during that time frame, you must move out and you will forfeit any money you have invested it the home.
However, our Lease Option to Purchase program has no fixed time frame. Your initial purchase price is locked in for 2 years. The lease renews on an annual basis with a 5% annual increase in the monthly payment for the first three years. Starting in the fourth year the lease renews on an annual basis with a 3% annual increase in the monthly payment. You have the option to buy the home at any time. "As long as you pay, you stay."
Exercising your Option to Purchase
When you are ready to buy, you can exercise your option to purchase at any time. At this point, you will go through the mortgage lending process. We can refer you to a local mortgage broker, or you may choose any lender you prefer. You will receive credit for 100% of your option money, 5% of your monthly payments, and any additional principal amounts you have paid.
Some frequently asked questions are addressed below:
What qualifications do I need to meet for the Lease Option to Purchase program?
The option money and first month's rent you pay up front will qualify you to move-in. You do not have to qualify based on your current credit score.
Why do I have to pay option money?
You pay the option money, because you are not going through the credit qualification process normally associated with purchasing a home.
When can I exercise my option to purchase? Do I have to wait one year?
You can buy the house at any time during the lease.
What is the process to exercise my option to purchase?
In order to exercise your option, you must get a mortgage on the home. You may use the lender of your choosing, or we will refer you to a lender. The exact qualifications and mortgage process will depend on the loan you apply for. There are many variables involved in the home-buying process. Three of the major factors are income, credit, and rental history. These variable may or may not apply depending on the loan you apply for.
