A Lease Purchase is a contract with a Tenant/Buyer in which he can lease a property for a certain time period with a monthly rent payment, and with more responsibilities than a renter. The “Option” is the agreed-upon price of the property that can be exercised by the buyer to purchase it at any time during the lease period.
Lease Options are commonly known as “Rent to Own” and “Lease Purchase”. In a Lease Option you are the Tenant/Buyer, and tenant/buyers have a legal, equitable position in the property which is highly recognized by lenders.
Tenant/Buyers are required to pay an Option Consideration (also known as the down payment) on the property which is non-refundable. Choosing to be a tenant/buyer in a Lease Option while working with a lender and utilizing our optional third-party credit repair program gives you an opportunity to eventually own a piece of the American Dream.
What are the benefits of buying a house on a Lease Purchase?
- It is much easier to qualify for a loan with the history of being a Tenant/Buyer in a Lease Purchase than the history of being a renter in a lease.
- During the time of the Lease, on your way to becoming an “A-credit” buyer, you can choose your own colors to paint, or to remodel or update the property.
- The monthly rent payment during the term of the Lease is locked in and can not be increased.
- The Option Price is locked in and can’t be increased during the lease term, which gives you a position to build equity.
- The Option to buy is exclusive which means the seller can’t sell the property during the term of the Lease Purchase.
- Tenant/Buyers win by getting to own a home in a shorter amount of time than it would take them if they were trying to buy conventionally.
- Tenant/Buyers are able to immediately occupy their new home while qualifying for a loan.
Bottom line, the power of the Lease Purchase legally puts the home renter into the position of being a home buyer. And now the home buyer becomes highly recognized by lenders as a “tenant/buyer” who holds a legal, equitable interest in the property during the term of the lease.