UNDERSTANDING
LEASE-OPTIONS

Leasing with an option to purchase is an excellent method to move from renting a home to being an owner. It offers many advantages over the traditional methods of purchasing a home.

• No large down payment required. 
   Instead you pay an amount up-front called “option consideration.” This amount, generally about 5% of the purchase price, locks in the price during the term and gives you the exclusive legal right to purchase the property. However, you are not required to purchase. If you exercise the option, the option consideration is applied toward the purchase price. If you do not exercise, it is not refundable. This compensates the investor/owner for keeping the property off the market during the term and for locking in a purchase price, regardless of whether home values increase.
  

• Profit from any appreciation during the term.
  

• Time to check out the home and neighborhood before buying.
  
• No up-front loan qualification necessary. 
  In most cases, we only require income verification and references. In addition, when you decide to exercise, we work with many different lenders, so we can work with you to help you obtain the best financing for the best terms.
  
• Allows time to save additional money for down payment, fix credit problems, etc.
  
• No taxes to pay during your lease term!
  
• Quick move-in time. 
  No lengthy waits to arrange closing. Look today, move in tomorrow!

A FEW COMMON QUESTIONS AND ANSWERS:

Q: Why should I pay option consideration when I can just rent by paying a security deposit and get it back when I move?
A: When you rent, your rent money is not working for you; it just disappears month after month. The option consideration allows you to move toward home ownership while still keeping your payments affordable.

Q: What if I decide I don’t want to buy the property?
A: You are not required to exercise the purchase option; however, the option consideration is NOT REFUNDABLE should you decide not to buy.

Q: What if I need more time before buying at the end of the term?
A: In certain cases, it might be possible to renew the lease for another term. This would require payment of additional option consideration, and could require that the purchase price be renegotiated.

Q: What about utilities, property taxes and homeowner’s insurance?
A: All utilities are the responsibility of the tenant/buyer. Until you purchase, all taxes are paid by the seller. In addition, we will maintain insurance on the structure and grounds, but you should consider obtaining renter’s insurance to protect the contents.

Q: What about maintenance?
A: The tenant/buyer is generally responsible for up keeping and  repairs.   For major repairs not due to misuse or negligence of the tenant/buyer, the seller's insurance would maintain responsibility.

Q: Where can I get more information?
A: If you have additional questions not answered here, please feel free to contact me at
 281-852-7355.

Here is an example:

Sales Price - $110,000 
Down Payment - $5,500 
Monthly Payment - $1,100 
Monthly Rent Credit - $100

At the end of the year you will have $6,700 
towards your purchase price.

Lets Look at a house that you buy through a bank:

Sale Price - $110,000
Down Payment - $10,000
Misc. Closing Costs - 2.5% = $2,500
Principle Paid, 1st Year @ 8.5% - $887.63

Through the end of the first year, through a bank, you have $6,612.37 towards your purchase price.  
But you have come out of pocket $12,500!

Have MORE than 5% to put down?  Click Here