How Does Lease to Purchase (Rent to Own) work?
I find myself answering this question numerous times per day so I figured it’s way over due that I post an explanation. There is a video post before this one on the blog as well.
Approximately 82% of the market cannot qualify TODAY for financing and typically would need to improve their credit to do so. Alternatively, other buyers with good credit are looking for a way to buy now while they save more instead of renting while they save.
Equity Enhacement Program
We offer lease purchase (rent to own) properties only – no straight rent. All properties will require 3%-10% down and that is credited against your purchase price. You then pay a monthly lease payment. Some homes also feature our Equity Enhancement Program. That works like this: on any given month you can put an extra payment toward the purchase price of $100-$500 ($100 increments) and receive a credit against the purchase price of 50% more. For example, if you have a month when you feel you can put an additional $200 down for your down payment, you receive $300 credit. The maximum in one month is $500 down so $750 credit. You can always put more down to improve your down payment for future financing, but the free equity you’ll get with theEquity Enhancement Program is capped at $500.
Credit Counsulting Services
During the course of the lease, you can use our credit consulting service we will refer you to. Whether you lease purchase one of our homes or not, you can certainly use them. They will give you a free consulting session and you can decide which course of action to take with them.