How does a lease option work?

Why Rent When You Can Own?

Are you tired of making someone else’s mortgage payments?

Wouldn’t it be great if some of those monthly rental payments could have gone towards the actual purchase of your own home?
Now they can through our unique “Lease to Purchase Program.”

The “Lease to Purchase Program” allows you to lease and occupy a home–while at the same time building equity towards the sale price which we set the day you sign the Lease/Purchase agreement.

Plus, you know that the work you do in the home will not be wasted when the lease is over.

Best of all, through this program, while you’re living in your home of the future and building equity, you’ll be improving your credit through timely payments, and putting yourself in a position where home ownership is not only possible, but easy.

Please read the FAQ’s below and if you have any questions please give us a call.


What is a lease purchase home?

Some buyers are unable to go to a lender at this time for various reasons
but would like to move into a home now and purchase it later. A
non-refundable deposit is required. This deposit will be applied towards
the purchase of the home at the end of the lease. At the end of the lease period,
the buyer will be required to get new financing.

Is my down payment/deposit refundable if I decide not to buy at
the end of the lease period or if I am unable to get a loan?

No. The deposit/down payment is not refundable. The only way you can
get your money back is if you find another buyer to buy your home.

Will I need to have perfect credit in order to purchase a home at the end
of the lease period?

No, but the better your credit score, the better your interest rate will be. If
you have a questionable credit problem, lenders like to see timely payment
for twelve months or so. Lenders do not like to see Chapter 7 & 13
Bankruptcies, repossessions and judgments. If you had a previous
Chapter 13 filing, did you fulfill your obligations? It is not impossible to
get a loan with these deficiencies but you will pay for it through higher
interest rates and points.

How much of a deposit or down payment is required? 

That depends on several things. The price of the home; the underlying
mortgage on the home; and the credit worthiness of the buyer. We could
set up an installment plan that the deposit/down payment could be paid in
over a period of time. This will be determined on a case by case basis.

Does any of the monthly lease payment go towards the purchase
price of the home? 

Yes. The amount credited will depend on how much you put down on the
home and how timely you make your payments.

Can your company assist me in getting a loan?

Yes, we can assist you in getting a loan. We can direct you to several
mortgage lenders and brokers we have dealt with in the past. However, it
is not our responsibility to see that you get qualified.


Shouldn’t I just list my home with a Realtor?

That’s certainly your option but obviously a Realtor won’t make your
payments for you while they sell your house. We are willing to make your
payments and maintain it while marketing your home.

Will you pay market price for my home? 

We can not pay market price for your home as we are in business to make
a profit. That doesn’t mean we are trying to steal your home from you.
If you are flexible in terms, we might be able to pay market price.

How do I know you’ll make my mortgage payments?

That can be handled in several ways. As company policy, we make
payments directly to the lender. You can verify this through most
automated customer service numbers. We could pay you and let you make
the payments or we could set up a third party escrow company to collect
from us. This service will only cost you about $8.00 per month.

When will you sell the house? 

We can’t give you an exact time. It will be up to the tenant/buyer to make
that decision within the time frame they have. We can tell you this, we
don’t get paid until the house is sold, so we will be just as anxious as you
to see that it happens as soon as possible.