What is a Lease Option?
A Lease Option is a simple way to gain the right to purchase a home in the near future at an agreed upon price. In the meantime, you lease the home with a portion of the monthly lease payment going towards the down payment needed to purchase the home. It is a great way for a person or family to get into a home while they repair their credit or save the down payment.
What is the difference between a Lease Option and a rental?
A lease Option and a rental both use the exact same lease agreement. The Lease Option has an additional contract giving the tenant the right to purchase the home during a specific period of time for a specifi price.
Will it cost more for a Lease Option than for a normal rental?
Yes. The difference in the monthly cost is usually the amount of money that will be applied toward the purchase of the home. This is commonly known as the "rent credit".
I have a pet. Is that okay?
Pets are welcomed with limited exceptions. An additional fee may be assessed but this fee is usually applied toward your down payment.
How much of a down payment credit will I have at the end of the lease?
This depends on the individual home but can be easily calculated.
Credit = Option Fee + (number of months in home) * (rent credit)
How long is the lease?
The normal lease is at least two years for the initial term. Longer terms are available depending on your situation.
Can I put down more money to lower my payments?
Yes. This is calculated on a case by case basis but it is very easy to accomplish.
What if I decide not to buy the home?
If you decide not to buy, you will forfeit any and all of the rental credit and the option fee that have been accummulated. These monies are solely for use toward the purchase of the home. If you fail to buy or decide not to buy, then these funds are non-