Lease with Purchase Option
The Lease with Purchase Option program is designed for customers that don’t want to lose all their monthly investment to rent but are not quite ready to consummate a traditional purchase.
Many of these customers are new to the area and may not be sure of the location or duration of their stay. They still wish to have the benefit of having some of their payment applied to the property if they do consummate the purchase.
This is also a great program for those who have extenuating circumstances keeping them from closing a purchase immediately. For example, credit issues or legal issues that will be resolved but are keeping them from closing now.
The program is quite simple. You can choose to pay an option fee and reduce your monthly payment or pay no option fee and get a monthly credit toward the purchase. The purchase price is fixed at the signing of the lease so you can lock in today’s prices based on a current market appraisal done by certified independent appraisers.
All leases are twelve month terms.
Another great feature is that all lease payments are automatically drafted from your account. This takes the hassle out of tracking your payments. An added bonus is that the payment history is reported to all three major credit bureaus helping those with credit issues raise their credit score.
You can pay an option fee in increments of $1,200.00 up to $3,600.00 upon signing. We will lower your monthly payment in proportion to the fee amount you choose. If you choose $3,600.00 we will lower your monthly payment $300.00. But here is the real value. On top of lowering your payment we will give you full credit for the amount of the fee you pay on top of lowering your payment. You get double credit for every dollar you spend!
The second part of the program applies regardless whether you choose to pay the up front fee or not. We will give you a $350.00 credit toward the purchase for every month leased. You can exercise your option anytime during the lease period.
Here is an example:
- Monthly Lease Payment $ 1,550.00
- Option fee paid (3,600.00)
- Payment Reduction for Fee $ 300.00
- Payment after Option Fee $ 1,250.00
If you elect to purchase, you have a credit for the $3,600.00 plus the additional $350.00 a month lease credit ($4,200.00) so your total credit is $ 7,800.00 to be applied at closing.
Remember you don’t have to do $3,600.00. You can pay $1,200.00, $2,400.00 or $3,600.00 and your payment will be reduced $100.00, $200.00, or $300.00 respectively as well as your credit.
You may elect to pay no option fee at all; it’s entirely up to you. You will still get the $350.00 per month credit.
Qualifying guidelines are quite different than a purchase. We want to help you win and obtain financing. We understand that many who elect this program have circumstances that need to be addressed. You will be evaluated on your income and work history as well as probability in addition to having a plan for long term financing.
However, if you complete the term of your lease and have decided not to purchase; no problem. If you wish to continue to lease we are usually agreeable with this as long as the lease has been amicable. However you must purchase to take advantage of the credits offered.
Click the images below to download the necessary forms:
Uniform Residential Loan Application
ClearNow Electronic Rent Collection Enrollment Materials
Please note, you must have Adobe Acrobat Reader to view and/or print. Click here to download Acrobat Reader now.
