Lease to Own FAQ

What Is a Lease-to-Own Purchase?

A lease-to-own house purchase (also known as a “rent-to-own purchase" or a "lease purchase") is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed upon price. The borrower pays an option fee, 1% to 5% of the price, which is credited to the purchase price. The borrower pays the monthly rent and an additional rent premium that is then credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the rent premium.

How do I decide if a Lease-to-Own plan is right for me?

A lease-to-own plan offers homeownership opportunities to consumers with little cash and/or poor credit, who are prepared to bet on themselves. The bet is that before the option period expires, they will qualify for the mortgage they need to exercise the purchase option. During the option period, they have the opportunity to rebuild their credit and accumulate equity while living in the house. 

Factors to consider:

1. How many years do you intend to stay in the home?
2. How motivated are you to improve your credit score?
3. How is the neighborhood outlook for potential appreciation?

How do I apply for the Lease-to-Own program?

Complete the Enrollment form and submit it.  We will contact you within one business day to review your enrollment application and discuss the Lease-to-Own program with you. 

Can I choose the home I want for the Lease-to-Own program?

Yes.  Once you have submitted an enrollment form our mortgage partner will determine if you qualify for the program.  When we know the home price you qualify for then we will work with one of our investors to purchase the home of your choice in the price range for which you have qualified.  Then we will have you work with an agent on our real estate team to make a lease-to-own offer on the home. 

What if I have bad credit?

We offer a FREE credit analysis.  After reviewing your credit we will make recommendations to you about what you must do to repair your credit.